What will your monthly mortgage payment be?
Short answer: Monthly payment = P × r × (1+r)^n / ((1+r)^n − 1), where P is loan amount, r is the monthly rate and n is the number of months.
Formula
M = P × r × (1+r)^n / ((1+r)^n − 1)
Monthly P&I
$1,996
Loan amount
$300,000
Total interest
$418,527
Over the life of the loan.
How to use this calculator
- Enter purchase price. The full price of the property.
- Enter down payment. As a dollar amount. 20–25% is typical for investment properties.
- Enter the annual interest rate. Use your rate lock or a live quote from a lender. Use 7.00 for 7.00%.
- Enter the loan term. 30 years is standard; 15 years reduces total interest but raises the monthly payment.
FAQ
What formula does the mortgage calculator use?
It uses the standard amortizing loan formula: M = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual / 12), and n is the number of monthly payments (years × 12).
Does this include taxes, insurance and HOA?
No. This calculator returns principal and interest (P&I) only. Use VeraFinder listing pages for full PITI + HOA estimates on a specific property.
How does a 30-year mortgage compare to a 15-year?
A 15-year mortgage typically carries a lower rate (0.5–0.75% less) and builds equity faster, but the monthly payment is higher. Investors frequently favor 30-year terms to maximize monthly cash flow.