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What's the Mortgage Payment Formula?

You may not Need a Mortgage Payment Formula


Question: I want to figure out how my mortgage works. What is the formula for mortgage payments?

Answer: If you want to run the numbers yourself, you can use a mortgage payment formula to calculate monthly payments. That formula is available on our Loan Payment Calculation page (along with other formulas you’ll need to pick your loan apart). However, it’s usually easier to let a calculator or spreadsheet do the work for you.

Online calculators and spreadsheet programs can tell you everything the mortgage payment formula does - and more - and you don’t have to do any math. All you have to do is provide information such as your loan amount, your interest rate, and your loan’s time frame. With that information, calculators can show how much you’ll pay every month (your monthly payment), along with a table detailing interest costs over time.

To get the answers right now, use the loan amortization calculator. You can also use pre-built Excel templates for loans if you want to play with the numbers a little more.

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