How this number is made
This is the plain installment payment. It does not add fees, tax, or insurance. Use it when the lender quoted a rate and a term and you want the payment that amortizes the balance.
- Months, not years. A five-year loan is 60.
- If the rate is 0, the payment is principal divided by months.
Formula
Payment = P × r(1+r)^n ÷ ((1+r)^n − 1), with r = APR ÷ 12.
Worked example
With the figures already in the form, monthly payment is $452.22.
Questions
Is this the APR payment?
It is the payment at the rate you type. If that rate is the note rate, fees are missing. The APR page solves a rate from a payment and a fee.
Can I use this for a mortgage?
Yes for principal and interest. A mortgage you live with also has tax and insurance. Those are on the mortgage page.