Chapter 1
Monthly Payment Calculator
📅
The monthly payment calculator answers the most important question before taking any loan: "Can I actually afford this?" It uses three inputs — loan amount, interest rate, and term — to calculate your exact monthly obligation.
📅 Monthly Payment Formula (M):
M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ−1]
Where P = principal, r = monthly rate, n = number of payments
M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ−1]
Where P = principal, r = monthly rate, n = number of payments
| Loan Amount | Rate | 30 Yr Payment | 15 Yr Payment |
|---|---|---|---|
| $200,000 | 6.5% | $1,264/mo | $1,742/mo |
| $350,000 | 7.0% | $2,329/mo | $3,147/mo |
| $500,000 | 7.5% | $3,496/mo | $4,645/mo |
🔗 Try the FaqLoan Monthly Payment Calculator →
🎯 Key Takeaway: The monthly payment is only part of the story. Always calculate TOTAL interest paid over the life of the loan.