Our PMT calculator helps you quickly estimate your periodic loan payments for mortgages, car loans, or personal loans. Understand how principal, interest, and loan term affect your monthly installments and make informed financial decisions with ease. Optimize your budget and plan your finances effectively.
Formula:
The PMT (Payment) formula calculates the fixed periodic payment for a loan with a constant interest rate. The formula is:
PMT = [ P × r × (1 + r)n ] / [ (1 + r)n – 1 ]
- PMT = Periodic Payment Amount
- P = Principal Loan Amount
- r = Periodic Interest Rate (Annual Interest Rate / Number of Payments Per Year / 100)
- n = Total Number of Payments (Loan Term in Years × Number of Payments Per Year)