How Do You Calculate What Your Mortgage Payment Will Be Without Using A Mortgage Calculator?

Can somone show me how to calculate a mortgage payment
like for example
what is the monthly payment on a $200,000 mortgage at 6% interest over 25 years?

7 thoughts on “How Do You Calculate What Your Mortgage Payment Will Be Without Using A Mortgage Calculator?

  1. monthly payment = interest portion + principal portion
    m1=12 in us the interest is compounded monthly
    (in canada m1=2, interest is compounded semi-annual)
    m2=12 payment every month
    YR=25
    %int=6 percent annual interest
    n= m2 * YR = 12 * 25 = 300
    int=%int / 100 / m1 = 6 / 100 / 12 = 0.005
    INT = (1 + int) ^ (m1 / m2) -1
    INT = (1 +0.005) ^ (12 /12) -1 = 0.005
    PV = loan = 200,000
    F1 = interest portion of mortg
    F1 = PV * INT = 200,000 * 0.005 = 1000
    F2 = equal monthly payment factor
    F2 = 1 – [1 + INT] ^ [ – n ]
    F2 = 1 – [1 + 0.005] ^ [ – 300 ]
    F2 = 0.77603432
    PMT = monthly payment = F1 / F2 = 1000 / 0.77603432
    PMT = 1288.60

  2. I’m not exactly sure off the top of my head without using a mortgage calculator but, someone has told me to just say 1% will be your mortgage payment. So with $200,000 mortgage i would estimate your payment to be 2000/mth.

  3. 1288.60 but that doesn’t include taxes or insurance. This is just P&I. Also take in account if you have HOA dues.

  4. With mortgages, we want to find the monthly payment required to totally pay down a borrowed principal over the course a number of payments.The standard mortgage formula is:
    M = P [ i(1 + i)n ] / [ (1 + i)n – 1]
    Where M is the monthly payment. i = r/12. The same formula can be expressed many different way, but this one avoids using negative exponentials which confuse some calculators.

  5. Hi NeedInfo06,
    Microsoft Excel has an amortization table template that you can use. If you do not have in your computer, go to Microsoft’s website. Type amortization table in the search bar. Download it from there.

  6. Easiest way to do that is to take the purchase price of the house and divide it by 100. The figure will be very close to your mortgage amount including property tax and insurance if you were paying roughly 9% interest. It’s good to figure it this way too, because then you’ve estimated on the high end, so you know it will be less than that. If you’re getting a 5% interest, than divide your figure by 50.

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