Question 1

How do I calculate my monthly mortgage payment?

Accepted Answer

Use the formula M = P [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of months. Enter your loan amount, annual interest rate, and loan term in months into our calculator to get your exact monthly payment.

Question 2

What is an amortization schedule?

Accepted Answer

An amortization schedule is a table showing each monthly payment broken down into principal and interest portions, along with the remaining balance after each payment. It shows how your loan balance decreases over time until it reaches zero at the end of the term.

Question 3

How much interest will I pay on a mortgage?

Accepted Answer

Total interest depends on your loan amount, interest rate, and term. For example, a $300,000 loan at 6.5% over 30 years results in approximately $382,666 in total interest. Use our calculator to see the exact amount for your specific loan terms.

Question 4

What is the difference between compound and simple interest?

Accepted Answer

Simple interest is calculated only on the principal amount. Compound interest is calculated on the principal plus accumulated interest, meaning you earn or pay interest on interest. Our calculator lets you compare both side by side.