What this estimate includes
Enter the amount borrowed in US dollars, the fixed annual interest rate as a percentage, and the term in months. Select Calculate to see the regular monthly principal-and-interest payment and the repayment schedule.
This is a simplified fixed-rate loan estimate. It excludes property taxes, homeowners insurance, mortgage insurance, closing costs, lender fees and other housing expenses. As the CFPB explains, your total monthly mortgage payment may include costs beyond principal and interest. This result is not a bank quote or an assessment of affordability.
Method and example
Let P be the amount borrowed, r the annual nominal interest percentage divided by 100 and then by 12, and n the number of monthly payments. For positive interest, the regular payment is P × r ÷ (1 − (1 + r)^(-n)). At zero interest, it is P ÷ n.
For $100,000 at 6% annually over 360 months, the unrounded payment is about $599.5505. The regular payment is $599.55. For a zero-interest loan of $1,200 over 12 months, each payment is $100. These are formula examples, not current lending offers.
Assumptions and limits
Interest accrues monthly at one-twelfth of the stated annual nominal rate. Payments are made monthly at the end of each period, with no skipped payments, prepayments or rate changes. Enter the interest rate, rather than an APR that incorporates fees.
The schedule rounds monetary amounts to cents and adjusts the final payment to clear the remaining balance. A lender may use different accrual and rounding conventions, so its schedule can differ. Allowed inputs are $0.01–$100,000,000 principal, 0–30% annual interest and 1–600 whole months. Some very small balances cannot support a regular amortizing schedule after cent rounding; the calculator reports an error for those combinations.
The CFPB’s payment explanation provides background on repayment over a fixed term.