Calculation Ledger — Monthly Repayment Amount
How much to repay each month based on the amount borrowed, annual interest rate, and number of years.
When to use When considering a mortgage, education, or car loan. When consulted about a family member's debt.
With level payment mortgages, the monthly repayment amount is constant. Initially, the interest portion is large, and later, the principal portion increases. The formula is as shown in the text; the monthly interest rate is the annual rate divided by 12. The difference between the total repayment amount and the amount borrowed is the price of time.
Try with your own numbers
Change the values to recalculate instantly. The formula is provided below. For the source of the values, see the reference page.
Input value
Output value
Formula Monthly Repayment = Amount Borrowed × Monthly Rate ÷ (1 − (1 + Monthly Rate)^(-Number of Months)). Monthly Rate = Annual Rate ÷ 12