Loan Payment
Fixed payment for a fully amortizing loan.
PMT = P·[r(1+r)^n]/[(1+r)^n−1]
Variables
- P
- loan principal
- r
- periodic interest rate
- n
- number of payments
How to use this formula
Identify the known values, keep units consistent, substitute the values into the formula, and calculate carefully. Then check whether the result is reasonable for the original problem.