How to Calculate Mortgage Payments (The Easy Way)
Buying a home is the biggest purchase of your life. Yet, most people don't understand how their monthly payment is actually calculated. Math is hard, and mistak
How to Calculate Mortgage Payments (The Easy Way)
Buying a home is the biggest purchase of your life. Yet, most people don't understand how their monthly payment is actually calculated. Math is hard, and mistakes here are expensive.
The Pain of "Hidden" Costs
When you see a home listed for $500,000, you might think "I can afford that." But the price is just the beginning. You need to account for Interest, Taxes, and Insurance (PITI). Missing one variable can break your budget.
The Hard Way: The Manual Formula
If you really want to do it yourself, here is the standard amortization formula banks use:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Confusing? Absolutely. And prone to human error.
The Easy Way: Use Automations
Why struggle with algebra? Our specialized tool breaks down every penny of your payment, including the "hidden" PITI costs banks often hide in the fine print.
Frequently Asked Questions
Does this include Property Tax?Yes. Property taxes can add hundreds to your monthly bill. Our calculator lets you input your specific tax rate for accuracy.