Mortgages, auto, and many other loans tend to use the time limit approach to the repayment of loans. Open an online loan calculator. To calculate the present value of an ongoing payment, you need to calculate the individual present values of each cash outflow and inflow and add them together. This loan calculator will help you determine the monthly payments on a loan. Try out the free online monthly payment calculator today! The Monthly Payment Calculator will calculate the monthly payment for any loan if you enter in the total loan amount, the number of months to pay off the loan, and the loan annual interest rate. Calculating the Monthly Payment in Excel. Microsoft Excel has a number of built-in functions for amortization formulas. The function corresponding to the formula above is the PMT function. Some examples include: 1. Save the workbook file with an appropriate and descriptive name. Use the outstanding loan balance as the new loan amount. Enter the new (or future) interest rate. In Excel, you could calculate the monthly payment using the following formula: = PMT (r, n, P) or = PMT (0.075/12, 5*12, 20000) Calculating the Rate Per Period. To calculate that payment: Determine how many months or payments are left. To calculate the monthly payment, convert percentages to decimal format, then follow the formula: a: 100,000, the amount of the loan r: 0.005 (6% annual rate—expressed as 0.06—divided by 12 monthly payments per year) 2. You can click the calculator in the "samples" section at the top of this page, then open it with Google Drive, or download it to open with Excel or another spreadsheet program.

Create a new amortization schedule for the length of time remaining (see how to do that). Adjustable-rate mortgages (ARMs) feature interest rates that can change, resulting in a new monthly payment. Monthly Payment Definition. Also, check out the Advanced Loan Payment Calculator for even more options. For mortgages in particular, choosing to have routine monthly payments between 30 years or 15 years or other terms can be a very important decision, because how long a debt obligation lasts can affect a person's long-term financial goals.