Calculating Your Mortgage Payment

To figure your mortgage payment, start by converting your annual interest rate to a monthly interest rate by dividing by 12.

Next, add 1 to the monthly rate.

Third, multiply the number of years in the term of the mortgage by 12 to calculate the number of monthly payments you’ll make.

## What is the formula for monthly payments?

To calculate the monthly payment, convert percentages to decimal format, then follow the formula: a: 100,000, the amount of the loan. r: 0.005 (6% annual rate—expressed as 0.06—divided by 12 monthly payments per year) n: 360 (12 monthly payments per year times 30 years)

## How do you calculate a loan payment?

Divide your interest rate by the number of payments you’ll make in the year (interest rates are expressed annually). So, for example, if you’re making monthly payments, divide by 12. 2. Multiply it by the balance of your loan, which for the first payment, will be your whole principal amount.

## What is the formula for calculating a 30 year mortgage?

Multiply 30 — the number of years of the loan — by the number of payments you make each year. For example, 30 X 12 = 360. You are making 360 payments over the course of the loan. Divide your mortgage interest rate by your total payments.

## How do you calculate mortgage balance?

**The equation is a little complex, so it is easier to break it down into manageable pieces.**

- Divide the APR by 12 to get the monthly interest rate.
- Raise “A” to the “nth” power, where “n” equals the total term of the mortgage in months.
- Subtract A^p from A^n.