How to calculate your monthly mortgage payment
Buying a home is one of the largest financial decisions you will ever make. Our free online mortgage calculator helps you understand exactly how much house you can afford by breaking down your monthly payments into principal, interest, taxes, and insurance (PITI).
The Mortgage Formula
If you want to do the math manually, the formula to calculate the monthly principal and interest payment is:
M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ]
- M = Total monthly payment
- P = Principal loan amount
- i = Monthly interest rate (annual rate divided by 12)
- n = Number of payments (years multiplied by 12)