How to Calculate Mortgage
Calculate your monthly mortgage payment including principal, interest, taxes, insurance, and PMI.
The Formula
loanAmount * (monthlyRate * (1 + monthlyRate)^numPayments) / ((1 + monthlyRate)^numPayments - 1)The mortgage formula uses the mathematical relationship: loanAmount * (monthlyRate * (1 + monthlyRate)^numPayments) / ((1 + monthlyRate)^numPayments - 1). Each variable in the formula represents a measurable quantity that affects the final result.
Step-by-Step Method
- 1Identify all input values needed for the mortgage calculation.
- 2Substitute your known values into the formula: loanAmount * (monthlyRate * (1 + monthlyRate)^numPayments) /.
- 3Perform the arithmetic operations in the correct order (PEMDAS/BODMAS).
- 4Check that your result has the correct units and is within a reasonable range.
- 5Verify using the interactive Mortgage Calculator to confirm your answer.
Related Topics
mortgagehome loanmonthly paymentPMIFHAhouse
Use the Interactive Calculator
Skip the manual math — get instant results with our free Mortgage calculator.