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Excel formula: Calculate payment for a loan | ExceljetHow to calculate loan payments in 3 easy stepsWhat Is Loan Amortization Formula? Calculation & Example?Calculating Monthly Loan Payments - Video & Lesson If you have an interest-only loan, calculating loan payments is a lot easier. The formula is: The formula is: Loan Payment = Loan Balance x (annual interest rate/12)05/10/2020 · Interest-Only Loan Payment Formula Calculating payments for an interest-only loan is easier. Multiply the amount you borrow (a) by the annual interest rate (r), then divide by the number of payments per year (n). Or, multiply the amount you borrow (a) by the monthly interest rate, which is the annual interest rate (r) divided by 12:  The formula for calculating the payment amount is shown below. Simple Amortization Calculation Formula. A = P X r(1 + r)n over (1 + r)n - 1. where. A = payment Amount per period. P = initial Principal (loan amount) r = interest rate per period.

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