How To Compute Monthly Amortization If You Don't Have A Loan Mortgage Calculator

To compute for the Monthly Amortization, derive first the Mortgage Constant or Monthly Amortization Factor (MC).

To get the Mortgage Constant or Monthly Amortization Factor (MC), here is the formula:

                  i
                ____

                 12
MC =  ________________________


                             -n (12)
          1 - ( 1 + i /12)

Ma = MC x P

where: MC = Mortgage Constant
           i    = Interest (Example, 0.18 )
           n   = no. of periods (Example, 15 years)
          Ma  = Monthly Amortization (unknown)
           P   = principal Loan


Using the examples above, just substitute the values to get the MC for 15 years. You wil get MC = 0.01610421

Problem:

Total Contract Price: Php 690,000.00
Down Payment: 10% or Php 69,000.00
Balance (P): 90% or Php 621,000.00 payable in 15 years at 18% interest per annum

Solution:

Ma = P x MC
Ma= Php 621,000.00 x 0.01610421 = Php 10,000.71 say Php 10,000.00