Here is the formula the lender uses to calculate your monthly payment: loan payment = loan balance x (annual interest rate/12) In this case, your monthly interest-only payment for the loan above would be $ Knowing these calculations can also help you decide which loan type would be best based on the monthly payment ;· Start by typing “Monthly payment” in a cell underneath your loan details. To use the PMT function, select the cell to the right of “Monthly payment” and type in "=PMT(" without the quotation marks. You will then be asked to enter the aforementioned data points: Rate: Each Period’s Interest Rate in Percentage TermsFind out how long it will take to pay off a personal loan. Imagine that you have a $2,500 personal loan, and have agreed to pay $150 a month at 3% annual interest. Using the function NPER(rate,PMT,PV) =NPER(3%/12,-150,2500) it would take 17 months and some days to pay off the loan. The rate argument is 3%/12 monthly payments per to Calculate a Loan Repayment Formula | SaplingHow to Calculate a Loan Repayment Formula | SaplingCalculating Monthly Loan Payments - Video & Lesson Calculating Monthly Loan Payments - Video & Lesson 25/02/2014 · The formula that we will use to help us out is called the loan payment amount formula. It is this: It is this: M is the monthly payment, P is the loan amount, J is the monthly interest and N the 10/10/2011 · What is the monthly payment? Solution: 30 years is 360 months, and the monthly interest rate is , or The loan amount is 90% of $250,000, which is $225,000. Substitute in equation 2: P = iA [1 − (1+i)^-N] P = 225000 [1 − ^-360] P = → $ is the monthly payment

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