Everyday Math
Intermediate

Monthly Loan Payment

Fixed monthly payment for an amortizing loan.

Formula

M=Pr(1+r)n(1+r)n−1M = P\frac{r(1+r)^n}{(1+r)^n - 1}

Variables

PPrincipal
rMonthly rate
nNumber of payments

Example

Used for mortgages and car loans

Did You Know?

Early payments are mostly interest, later ones mostly principal.

moneyloan