Formula & method
M = P × r(1+r)ⁿ ÷ ((1+r)ⁿ−1)
The standard fixed-rate amortisation formula converts annual interest to a periodic rate and spreads principal and interest across equal payments.
Assumptions
- Inputs remain in your browser and are not saved.
- Rates are converted to the payment frequency shown.
- Results are rounded for display; internal calculations retain precision.
Example calculation
Example
A $400,000 loan at 6.5% for 30 years is about $2,528 per month before taxes and insurance.
Important
Educational estimates only — not financial, tax or legal advice.