Simple/Fixed Rate Mortgage (FRM) Payment Calculator  

P = Loan Amount / Principal Amount
i = Interest rate
n = no. of years / tenure of payments
Example:
Calculate the Mortgage payment and interest for the loan taken of Rs.100000, interest rate 5 % and the term or number of years is 15 years.
Solution:
Loan amount = P = 100000
I = Interest = 5% = 0.5/12 = 0.004167
n = no. of years = 15= 12 times = 180 payments
Formula:
M = P [ i(1 + i)^{n} ] / [ (1 + i)^{n}  1]
M = 100000[0.00416 (1+0.00416)^{180}] / [(1+0.00416)^{180}1]
M = 100000[0. 00416(1.00416)^{180}] / [(1.00416)^{180}– 1]
M = 100,000 x 0.00790 = 790.81