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Monthly Mortgage Payment Formula

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The Monthly Payment is the amount a borrower is required to pay each month until a debt is paid off. Check FAQs

p = \frac{MA \cdot R \cdot {(1 + R)}^{n}}{{(1 + R)}^{n} - 1}

p - Monthly Payment?MA - Mortgage Amount?R - Interest Rate?n - Compounding Periods?

Monthly Mortgage Payment Example

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With units

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Here is how the Monthly Mortgage Payment equation looks like with Values.

Here is how the Monthly Mortgage Payment equation looks like with Units.

Here is how the Monthly Mortgage Payment equation looks like.

156000.0006 = \frac{26000 \cdot 6 \cdot {(1 + 6)}^{10}}{{(1 + 6)}^{10} - 1}

156000.0006 = \frac{26000 \cdot 6 \cdot {(1 + 6)}^{10}}{{(1 + 6)}^{10} - 1}

156000.0006 = \frac{26000 \cdot 6 \cdot {(1 + 6)}^{10}}{{(1 + 6)}^{10} - 1}

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Monthly Mortgage Payment Solution

Follow our step by step solution on how to calculate Monthly Mortgage Payment?

FIRST Step Consider the formula

p = \frac{MA \cdot R \cdot {(1 + R)}^{n}}{{(1 + R)}^{n} - 1}

Next Step Substitute values of Variables

∴

p = \frac{26000 \cdot 6 \cdot {(1 + 6)}^{10}}{{(1 + 6)}^{10} - 1}

Next Step Prepare to Evaluate

∴

p = \frac{26000 \cdot 6 \cdot {(1 + 6)}^{10}}{{(1 + 6)}^{10} - 1}

Next Step Evaluate

∴

p = 156000.000552261

LAST Step Rounding Answer

∴

p = 156000.0006

Monthly Mortgage Payment Formula Elements

Variables

Monthly Payment

The Monthly Payment is the amount a borrower is required to pay each month until a debt is paid off.

Symbol: p

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Monthly Payment

Mortgage Amount

Mortgage Amount is a regularly scheduled payment which includes principal and interest paid by the borrower to the lender of the home loan.

Symbol: MA

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Mortgage Amount

Interest Rate

Interest Rate is the amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.

Symbol: R

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Interest Rate

Compounding Periods

Compounding Periods is the number of times compounding will occur during a period.

Symbol: n

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Compounding Periods

Other formulas in Important Formulas of Mortgage and Real Estate category

Go Debt Ratio

DR = \frac{TD}{TA}

Go Rental Yield

RY = (\frac{ARI}{PV}) \cdot 100

Go Price per Square Foot

P sqf = \frac{PSP}{T sqf}

Go Floor Area Ratio

FAR = \frac{GFA}{TLS}

How to Evaluate Monthly Mortgage Payment?

Monthly Mortgage Payment evaluator uses Monthly Payment = (Mortgage Amount*Interest Rate*(1+Interest Rate)^Compounding Periods)/((1+Interest Rate)^Compounding Periods-1) to evaluate the Monthly Payment, A Monthly Mortgage Payment is an amount a borrower is required to pay each month until a debt is paid off. Monthly Payment is denoted by p symbol.

How to evaluate Monthly Mortgage Payment using this online evaluator? To use this online evaluator for Monthly Mortgage Payment, enter Mortgage Amount (MA), Interest Rate (R) & Compounding Periods (n) and hit the calculate button.

FAQs on Monthly Mortgage Payment

What is the formula to find Monthly Mortgage Payment?

The formula of Monthly Mortgage Payment is expressed as Monthly Payment = (Mortgage Amount*Interest Rate*(1+Interest Rate)^Compounding Periods)/((1+Interest Rate)^Compounding Periods-1). Here is an example- 156000 = (26000*6*(1+6)^10)/((1+6)^10-1).

How to calculate Monthly Mortgage Payment?

With Mortgage Amount (MA), Interest Rate (R) & Compounding Periods (n) we can find Monthly Mortgage Payment using the formula - Monthly Payment = (Mortgage Amount*Interest Rate*(1+Interest Rate)^Compounding Periods)/((1+Interest Rate)^Compounding Periods-1).

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Monthly Mortgage Payment Formula

Monthly Mortgage Payment Example

Monthly Mortgage Payment Solution

Monthly Mortgage Payment Formula Elements

Other formulas in Important Formulas of Mortgage and Real Estate category

How to Evaluate Monthly Mortgage Payment?

FAQs on Monthly Mortgage Payment

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