P&n Mortgage Calculator
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Reviewed by Calculator Editorial Team
Calculate your P&N mortgage payments with this professional calculator. Understand the formula, assumptions, and how to interpret your results.
What is a P&N Mortgage?
A P&N mortgage, or Principal and Interest Mortgage, is a type of home loan where the borrower pays both the principal amount and the interest on the loan each month. This is the most common type of mortgage in the United States.
The P&N mortgage formula calculates your monthly payment based on the loan amount, interest rate, and loan term. The calculation follows the standard amortization formula:
The result is your fixed monthly payment amount, which includes both principal and interest. Over time, the portion of each payment that goes toward principal increases while the interest portion decreases.
How to Use This Calculator
Using our P&N mortgage calculator is simple:
- Enter the loan amount you're applying for
- Input your annual interest rate
- Select the loan term in years
- Click "Calculate" to see your monthly payment
- Review the amortization schedule chart
The calculator will show you your monthly payment and provide a visual breakdown of how your loan is amortized over time.
Formula Used
The P&N mortgage calculator uses the standard amortization formula:
This formula accounts for both the principal amount and the interest, providing an accurate monthly payment figure.
Worked Example
Let's calculate a P&N mortgage payment for a $200,000 loan at 4.5% annual interest over 30 years:
Monthly payment = $200,000 [ (0.045/12)(1 + 0.045/12)^360 ] / [ (1 + 0.045/12)^360 - 1 ]
Calculated monthly payment = $1,073.64
This means you would pay $1,073.64 per month for 30 years to repay the $200,000 loan.
Amortization Schedule
The table below shows how your loan is amortized over time:
| Year | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $1,073.64 | $84.85 | $988.79 | $199,915.15 |
| 2 | $1,073.64 | $169.70 | $903.94 | $199,745.45 |
| 3 | $1,073.64 | $254.55 | $819.09 | $199,490.90 |
| ... | ... | ... | ... | ... |
| 30 | $1,073.64 | $1,073.64 | $0.00 | $0.00 |
As you can see, the interest portion decreases over time while the principal portion increases.
Frequently Asked Questions
What is a P&N mortgage?
A P&N mortgage is a Principal and Interest mortgage where you pay both the principal amount and interest on your loan each month. It's the most common type of home loan in the US.
How is the monthly payment calculated?
The monthly payment is calculated using the standard amortization formula that accounts for both the principal amount and interest. The formula is M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ].
What factors affect my mortgage payment?
Your mortgage payment is affected by the loan amount, interest rate, and loan term. Higher loan amounts, higher interest rates, and longer loan terms will result in higher monthly payments.
Can I pay extra toward my mortgage?
Yes, paying extra toward your mortgage can help you pay off your loan faster and save on interest. However, it's important to check with your lender about any prepayment penalties.
What happens if I can't make my mortgage payments?
If you can't make your mortgage payments, you should contact your lender immediately. Missing payments can result in late fees, negative impact on your credit score, and potentially foreclosure.