Monthly payment on a $200,000 mortgage at 5% for 30 years

Solution

1. 1 Principal P = 200000.00
2. 2 APR 5%
3. 3 Term 30 years, 12 payments per year (360 total)
4. 4 Periodic rate r = 5% / 12 = 0.416667% per period
5. 5 Formula PMT = P · r / (1 − (1 + r)⁻ᴺ)
6. 6 Payment PMT = 1073.64 per period
7. 7 Total paid 386511.57 = 360 · 1073.64
8. 8 Total interest 186511.57
9. 9 Payment 1 interest 833.33, principal 240.31, balance 199759.69
10. 10 Payment 2 interest 832.33, principal 241.31, balance 199518.38
11. 11 Payment 3 interest 831.33, principal 242.32, balance 199276.06
12. 12 Payment 4 interest 830.32, principal 243.33, balance 199032.74