30 Year Mortgage Payment Calculator Bankrate

Mortgage Payment Formula:

\[ M = P \times \frac{r(1 + r)^{360}}{(1 + r)^{360} - 1} \]

Monthly Payment (USD):

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is a 30-Year Mortgage Payment Calculator?

Definition: This calculator estimates the monthly payment for a fixed-rate 30-year mortgage based on loan amount and interest rate.

Purpose: It helps homebuyers and homeowners understand their potential mortgage obligations before committing to a loan.

2. How Does the Calculator Work?

The calculator uses the standard mortgage formula:

\[ M = P \times \frac{r(1 + r)^{360}}{(1 + r)^{360} - 1} \]

Where:

\( M \) — Monthly payment (USD)
\( P \) — Loan principal amount (USD)
\( r \) — Monthly interest rate (annual rate ÷ 12)
360 — Total number of payments (30 years × 12 months)

Explanation: The formula accounts for both principal and interest payments over the full 30-year term.

3. Importance of Mortgage Calculation

Details: Accurate payment estimation helps with budgeting, loan comparison, and determining affordable home prices.

4. Using the Calculator

Tips: Enter the loan amount and annual interest rate (without % sign). The calculator assumes a standard 30-year fixed mortgage.

5. Frequently Asked Questions (FAQ)

Q1: Does this include taxes and insurance?
A: No, this calculates only principal and interest. Your actual payment may include escrow for taxes and insurance.

Q2: How does interest rate affect payments?
A: Higher rates significantly increase monthly payments. A 1% rate difference can change payments by hundreds of dollars.

Q3: What if I want a different loan term?
A: For 15-year mortgages, change the exponent from 360 to 180 in the formula.

Q4: Why 360 payments for 30 years?
A: This is standard in mortgage calculations (30 × 12), though actual terms may vary slightly.

Q5: How accurate is this calculator?
A: It provides precise principal+interest estimates, but consult lenders for exact quotes including fees.