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rainpizza t1_irgihes wrote

Reply to comment by hmiamid in [OC] House price you can afford by paying 1000/month for 30 years vs. interest rate by hmiamid

What's the formula behind this graph?

Asking because I am curious to see if I can tweak it for my situation.

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hmiamid OP t1_irgj20r wrote

Sure. Formula is (1-q^-N )/(q^(1/12)-1) where q is 1+r, r is the interest rate and N is the mortgage term in years. Make sure to put r without a percentage. So f.ex. for 5%, r = 0.05 and therefore q = 1.05. The 1/12 is because we pay every month.

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