The Monthly Loan Payment (a.k.a. Amortization) calculator computes the monthly payment required to pay off a debt with a fixed interest rate over a period of time.
INSTRUCTIONS: Choose units and enter the following:
- (P) Principal Loan Amount
- (r) Annual Interest Rate Percentage (e.g. 4.5%)
- (N) Number of Years of Loan
Monthly Payment (MP): The calculator computes the fixed monthly payment needed to payoff the loan in the amount of time. The payment is in U.S. dollars. However, this can be automatically converted to other currency units via the pull-down menu.
The Math / Science
This formula is commonly used for home mortgages and other simple debt. The word AMORTIZATION comes from the Middle English amortisen which means "to kill". In essence, this is the amount needed on a regular basis "to kill" a debt.
The formula for a monthly amortized payment is:
`MP = (P * (r/12)) / (1- (1+(r/12))^(-12*N))`
where:
- MP = Monthly Payment
- P = Principal Loan Amount
- r = Annual Interest Rate
- N = Number of Years
Personal Finance Calculators
- Monthly Loan Payment: Computes the monthly payment of a fixed interest rate loan (e.g., home mortgage or car loan).
- Credit Card Equation: Computes the number of months to pay off a credit card.
- Mortgage Affordability: Compute the amount of principal one can borrow based on monthly payment, duration and interest rate.
- Leverage Ratio: Calculates a ratio describing debt to income.
- Compound Interest: Computes the compounded interest on a fixed interest rate investment
- CAGR: Computes the compounded annual growth rate achieved on an investment.
- Rule of 72: Provides a quick estimate on time to double an investment
- Simple Interest Earned: Computes a rough estimate on interest earned over time.
- Wage Calculator: Computes the annual, monthly and weekly pay amounts base on hourly wage and hours per week.
- Current Mortgage Rates:
- 30 Year Fixed Interest Rate: 7.04 %
- 15 Year Fixed Interest Rate: 6.41 %
- 7/6 SOFR ARM: 7.05 %
Financial Calculators
Also consider the following finance and accounting equations and calculators:
- Net Cash flow from Operation
- Current Ratio or Liquidity Ratio
- Capital Recovery Factor
- Annual Percentage Yield
- Simple interest Earned
- Debt to Equity Ratio
- Compound interest Future Value
- Personal Finace
- Microeconomics Calculator
- Annualized Amortization
- Credit Card Equation
- Leverage Ratio
- Cash Flow
- Compound Interest
- CAGR
- Present Value
- Future Value
- Rule of 72
- Simple Interest Earned