How to Calculate a Mortgage Payment (In 2 Minutes)
Walks through the full mortgage payment formula step by step — from loan amount and interest rate to the exact P&I breakdown for each month. No shortcuts, every variable explained.
What you'll learn
- The amortization formula M = P × [r(1+r)^n] / [(1+r)^n − 1] and what each variable means
- Why early payments are mostly interest and later ones mostly principal
- How loan term and interest rate each change the monthly payment independently
- How to verify any calculator's output by hand