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`"Monthly Payment" = f( "P" , "r" , N )`

Enter a value for all fields

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.

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

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