Processing...

`"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 Amount Borrowed - (
**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. It is typically used in a way were the periods (t) are in years, and the number of payments per period (n) is 12 for the number of months. 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 amortized payment is:

`MP = (P * (r/12)) / (1- (1+(r/12))^(-12*N))`

where:

- MP = Monthly Payment
- r = Annual Interest Rate
- N = Number of Years

**Annualized Amortization**- computes the monthly payment of a fixed interest rate loan (e.g. home mortgage).**Credit Card Equation**- computes the number of months to pay off a credit card.**Affordable Borrowing Amount**: - compute the amount of principal one can borrow based on monthly payment.**Leverage Ratio**- calculates a ratio describing debt to income.**Cash Flow**- calculates the difference between income an expenses**Compound Interest**- computes the compounded interest on a fixed interest rate investment**CAGR**- computes the compounded annual growth rate achieved on an investment.**Present Value**- computes the present value of a fixed annuity.**Future Value**- computes the future value of a fixed annuity.**Rule of 72**- provides a quick estimate on time to double an investment**Simple Interest Earned**- a rough estimate on interest earned over time.**Wage Calculator**- Computes the annual, monthly and weekly pay amounts base on hourly wage.