Calculating the monthly payment of your mortgage is the most basic calculation in terms of mortgage. You can apply the same calculation for loans. That’s why the monthly mortgage payment calculator is also called a loan payment calculator. To be on the safe side, make sure you stay under forty percent of your net income. For example, 40% of $4,000 corresponds to a mortgage payment of $1,440.

Here is the monthly mortgage payment formula:

payment = [P(1 + r)n r]/[(1 + r)n – 1]

These are the amounts you need:

– P means principal amount of the loan.

-r stands for interest rate. To get the rate, divide the interest rate by twelve months, because there are twelve months in a year.

– n means the number of payments. Basically, multiply the number of years by twelve months.

Suppose you want to know the monthly payment on a 30-year mortgage for $100,000 at an interest rate of 7%. The rate equals 0.00583, which is the interest rate divided by twelve months, while the number of payments equals 360 (30 years X 12 months). You pay a monthly mortgage payment of $665 per month.

Here is the actual calculation:

equal pay [$100,000(1 + .00583)360 x 0.00583] / [(1 + 0 .00583)360 – 1]. Her monthly mortgage payment is $665.30. By the way, 360 is an exponent.