United States version
What this tool answers
This tool answers one question: how much is the scheduled monthly payment for a known loan amount, interest rate and fixed term? It does not solve for a payoff date from a payment you choose.
Formula
M = P × r / [1 − (1 + r)^(−n)]; for r = 0, M = P / n.
Worked example: A zero-interest purchase
A $7,200 balance repaid over three years at 0% has 36 monthly payments. The scheduled payment is $7,200 / 36 = $200, with no interest in this example.
Load these worked-example inputs
Limitations
This fixed-rate illustration excludes fees, variable rates, daily-interest conventions and irregular payment dates. A lender’s actual schedule can differ.
Frequently asked questions
Which three facts determine this scheduled payment?
The starting principal, fixed interest rate and number of monthly payments determine this model.
Does a zero-percent loan require a special formula?
Yes. Divide principal by the payment count instead of using the interest-bearing expression.
Can this page infer a term from my chosen payment?
No. Use the repayment tool for a payoff-time estimate from a chosen payment.