⚡ Quick answer
To calculate your fixed mortgage payment, use the formula PMT = P × r ÷ (1 − (1 + r)^−n), where P is the principal, r is the monthly interest rate, and n is the number of payments.
Mortgage Payment (Fixed)
Level monthly payment for principal P, monthly rate, n months (standard amortization).
📖 What it is
The Mortgage Payment (Fixed) calculator helps you determine the consistent monthly payment required to repay a loan over a specified period. Knowing your monthly payment is essential for budgeting and can significantly impact your financial planning.
This tool requires three key inputs: the loan principal (P), the annual percentage rate (APR) converted to a monthly rate (r), and the total number of months (n) for repayment. The output is a fixed monthly payment that encompasses both principal and interest, allowing you to understand your financial commitment.
Keep in mind that this calculator assumes a fixed interest rate over the loan's duration. It’s most accurate for standard amortization loans and may not be reliable for adjustable-rate mortgages (ARMs) or loans with additional fees or points that aren’t included in the principal.
How to use
- Determine the loan amount (P).
- Find the annual interest rate and convert it to a monthly rate (r).
- Decide on the loan term in years and convert it to months (n).
- Apply the formula to calculate your monthly payment.
- Review the result for budgeting purposes.
📐 Formulas
- Monthly Payment Formula—PMT = P × r ÷ (1 − (1 + r)^−n)
- Monthly Rate Calculation—r = APR / 12
- Total Payment Calculation—Total Payment = Monthly Payment × n
💡 Example
For a $400,000 loan at 6% APR over 30 years:
1. Convert APR to monthly rate: r = 0.06 / 12 = 0.005.
2. Calculate number of months: n = 30 × 12 = 360.
3. Apply the formula: PMT = 400000 × 0.005 ÷ (1 − (1 + 0.005)^−360) ≈ $2,398.
Real-life examples
30-Year Fixed Mortgage
For a $400,000 loan at 6% APR, your monthly payment would be approximately $2,398.
15-Year Fixed Mortgage
For a $300,000 loan at 4% APR, your monthly payment would be approximately $2,219.
Scenario comparison
- 30-Year Fixed vs 15-Year Fixed—A 30-year mortgage has lower monthly payments ($2,398) but more interest paid over time, while a 15-year mortgage has higher payments ($2,219) but less overall interest.
- Fixed Rate vs Adjustable Rate—Fixed rate mortgages provide stability in payments over time, while adjustable rates may start lower but can increase significantly.
Common use cases
- Budgeting for a new home purchase.
- Comparing different mortgage options.
- Understanding the impact of interest rates on payments.
- Planning for long-term financial commitments.
- Calculating affordability before making an offer.
- Evaluating refinancing options.
- Assessing the financial impact of moving.
- Preparing for a fixed monthly expenditure.
How it works
The Mortgage Payment calculator works using the formula PMT = P × r ÷ (1 − (1 + r)^−n), where P is the principal amount, r is the monthly interest rate, and n is the number of months. This formula computes a level payment that ensures the loan is fully paid off by the end of the term.
What it checks
This tool checks the level monthly payment required for a given principal, interest rate, and loan term.
Signals & criteria
- Principal Amount
- Annual Percentage Rate (APR)
- Loan Term in Months
Typical errors to avoid
- Using APR directly as monthly rate without conversion.
- Confusing adjustable-rate mortgages (ARMs) with fixed-rate loans.
- Ignoring additional points or fees that impact total cost.
Decision guidance
Trust workflow
Recommended steps after getting a result:
- Verify the principal amount and interest rate.
- Ensure the loan term is accurately calculated in months.
- Double-check for any additional fees or points before finalizing your decision.
FAQ
FAQ
Biweekly?
Different schedule—use specialized calculators.