Mortgage Amortization Formula (Basic)
A = P\frac{i(1+i)^n}{(1+i)^n - 1}
where:
- A = periodic payment amount
- P = amount of principle or loan owing (subtracting any down-payments)
- i = period interest rate
- NOTE: if installments are monthly and interest rate is annual, need to divide by 12
- n = total number of payments
The proof of the formula can be found here: