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Monthly Payment Formula

GoLoan Amortization Formula

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The Monthly Payment is the amount a borrower is required to pay each month until a debt is paid off. Check FAQs

p = LA \cdot (\frac{R \cdot {(1 + R)}^{CP}}{{(1 + R)}^{CP} - 1})

p - Monthly Payment?LA - Loan Amount?R - Interest Rate?CP - Compounding Periods?

Monthly Payment Example

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Here is how the Monthly Payment equation looks like with Values.

Here is how the Monthly Payment equation looks like with Units.

Here is how the Monthly Payment equation looks like.

4770.4551 = 20000 \cdot (\frac{0.2 \cdot {(1 + 0.2)}^{10}}{{(1 + 0.2)}^{10} - 1})

4770.4551 = 20000 \cdot (\frac{0.2 \cdot {(1 + 0.2)}^{10}}{{(1 + 0.2)}^{10} - 1})

4770.4551 = 20000 \cdot (\frac{0.2 \cdot {(1 + 0.2)}^{10}}{{(1 + 0.2)}^{10} - 1})

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Monthly Payment Solution

Follow our step by step solution on how to calculate Monthly Payment?

FIRST Step Consider the formula

p = LA \cdot (\frac{R \cdot {(1 + R)}^{CP}}{{(1 + R)}^{CP} - 1})

Next Step Substitute values of Variables

∴

p = 20000 \cdot (\frac{0.2 \cdot {(1 + 0.2)}^{10}}{{(1 + 0.2)}^{10} - 1})

Next Step Prepare to Evaluate

∴

p = 20000 \cdot (\frac{0.2 \cdot {(1 + 0.2)}^{10}}{{(1 + 0.2)}^{10} - 1})

Next Step Evaluate

∴

p = 4770.45513765718

LAST Step Rounding Answer

∴

p = 4770.4551

Monthly Payment Formula Elements

Variables

Monthly Payment

The Monthly Payment is the amount a borrower is required to pay each month until a debt is paid off.

Symbol: p

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Monthly Payment

Loan Amount

The Loan Amount is the original principal on a new loan or principal remaining on an existing loan.

Symbol: LA

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Loan Amount

Interest Rate

Interest Rate is the amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.

Symbol: R

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Interest Rate

Compounding Periods

Compounding Periods is the number of times compounding will occur during a period.

Symbol: CP

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Compounding Periods

Other Formulas to find Monthly Payment

Go Loan Amortization

p = \frac{roi \cdot P}{MP Year \cdot (1 - {(1 + \frac{roi}{MP Year})}^{- MP Year \cdot T})}

Other formulas in Loan Repayment category

Go Number of Months

n = \log 10 \frac{\frac{\frac{p}{R}}{(\frac{p}{R}) - LA}}{\log 10} (1 + R)

How to Evaluate Monthly Payment?

Monthly Payment evaluator uses Monthly Payment = Loan Amount*((Interest Rate*(1+Interest Rate)^Compounding Periods)/((1+Interest Rate)^Compounding Periods-1)) to evaluate the Monthly Payment, The Monthly Payment refers to a fixed amount of money that a borrower agrees to pay to a lender at regular intervals, typically on a monthly basis, as part of a loan agreement. Monthly Payment is denoted by p symbol.

How to evaluate Monthly Payment using this online evaluator? To use this online evaluator for Monthly Payment, enter Loan Amount (LA), Interest Rate (R) & Compounding Periods (CP) and hit the calculate button.

FAQs on Monthly Payment

What is the formula to find Monthly Payment?

The formula of Monthly Payment is expressed as Monthly Payment = Loan Amount*((Interest Rate*(1+Interest Rate)^Compounding Periods)/((1+Interest Rate)^Compounding Periods-1)). Here is an example- 4770.455 = 20000*((0.2*(1+0.2)^10)/((1+0.2)^10-1)).

How to calculate Monthly Payment?

With Loan Amount (LA), Interest Rate (R) & Compounding Periods (CP) we can find Monthly Payment using the formula - Monthly Payment = Loan Amount*((Interest Rate*(1+Interest Rate)^Compounding Periods)/((1+Interest Rate)^Compounding Periods-1)).

What are the other ways to Calculate Monthly Payment?

Here are the different ways to Calculate Monthly Payment-

Monthly Payment=(Rate of Interest*Principal Loan Amount)/(Monthly Payments in Year*(1-(1+Rate of Interest/Monthly Payments in Year)^(-Monthly Payments in Year*Time in terms of year)))

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: Value
: Unit

Monthly Payment Formula

​GoLoan Amortization Formula

Monthly Payment Example

Monthly Payment Solution

Monthly Payment Formula Elements

Other Formulas to find Monthly Payment

Other formulas in Loan Repayment category

How to Evaluate Monthly Payment?

FAQs on Monthly Payment

Variable Name

GoLoan Amortization Formula