Understanding your calculation
Method, example and limitations
How the calculation works
A fixed-rate mortgage payment combines principal and interest. For monthly rate r and n payments, payment = P × r ÷ (1 − (1 + r)^−n). At zero interest, divide principal by the number of payments.
Example to check
A $300,000 loan at 6% annually over 30 years has monthly principal and interest of approximately $1,798.65, before taxes and insurance.
Before using the result
Compare the same loan amount, term and rate. Property tax, insurance, mortgage insurance, fees and lender-specific rules can increase the actual monthly cost.