• Register

What is the mathematical formula used to determine the payment amount on a mortgage?

+1 vote
asked Jul 31, 2015 in Finance by LisaH (33,300 points)
Share This Q&A

1 Answer

+2 votes
Best answer

Are you sure you want to calculate this by hand? If so, here's the formula that will figure out your monthly payment amount if you can provide the amount of your loan (P), the fixed interest rate (i), and the term of the loan in months (n).  Just plug the numbers into the right-side of the equation, and you'll see how much your monthly mortgage payment (M) is over the life of the loan.


M = P(1+i)n i / [(1+i)n-1]



If you want to do it the easier way, use a mortgage calculator:


answered Aug 1, 2015 by turker88 (23,620 points)
selected Aug 2, 2015 by LisaH

Copyright © 2015 AnswerThis.co    

Legal: Privacy Policy | Terms of Service | Cookies Policy | Anti SPAM Policy | Copyright Notice