How this number is made
Medical financing is often a promotional zero-percent offer that becomes an expensive rate if you miss the payoff window. At zero percent the payment is the balance divided by the months. Type the real rate if the promo does not apply.
- Amount financed is after the down payment and before a fee you pay in cash.
- The rate is the rate in the note. A promotional rate that expires is not this page.
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 $250.00.
Questions
Why is this its own page?
A zero-percent promo is only as good as the months you typed. If a deferred interest clause exists, this page does not model the back-billed interest.
Are fees included?
Only if you added them to the amount financed. A fee paid in cash is a cost, but it does not change this payment.