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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 ;· Loan Payment Formula - YouTube. Loan Payment Formula. Watch later. Share. Copy link. Info. Shopping. Tap to unmute. If playback doesn't begin shortly, try restarting your ;· 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:  17/02/2019 · This is the standard formula to calculate monthly payments. In the above equation: A is the amount of payment for each period. P is the principal amount of the loan. r is the rate of