---
title: "How to Calculate Mortgage Payments — P&I Formula, US vs UK vs Canada"
description: "Learn the mortgage payment formula step by step. Covers principal and interest calculations, amortization, and how mortgage terms differ between the US (30yr), UK (25yr), Canada (25yr), and Australia."
url: "https://worldcalculators.org/learning/how-to/mortgage-payments/"
canonical: "https://worldcalculators.org/learning/how-to/mortgage-payments/"
---

# How to Calculate Mortgage Payments

Learn the mortgage payment formula step by step. Covers principal and interest calculations, amortization, and how mortgage terms differ between the US (30yr), UK (25yr), Canada (25yr), and Australia.

## Quick answer

Monthly payment M = P × [r(1+r)^n] ÷ [(1+r)^n − 1] — where P = loan amount, r = monthly rate (annual rate ÷ 12), n = total monthly payments. Example: $300,000 at 6.5% for 30 years → M ≈ $1,896/month. Total interest over 30 years ≈ $382,000 — more than the loan itself.

## The Mortgage Payment Formula

Take the annual interest rate, divide by 100 to get decimal, divide by 12. Example: 6.5% annual → 0.065 ÷ 12 = 0.005417 per month.
Multiply loan term in years by 12. 30-year mortgage → 30 × 12 = 360 monthly payments.

Source: https://worldcalculators.org/learning/how-to/mortgage-payments/
Markdown mirror of the HTML page. Prefer this URL for RAG; the interactive calculator still lives on the HTML page.