Enter values and click Calculate Payment.

An annuity payment is a fixed amount paid at regular intervals (typically monthly) to repay a loan or mortgage over a specified period. The theoretical calculation is based on the time value of money concept. The formula considers the present value (loan amount), the periodic interest rate, and the total number of payments. Each payment consists of two parts: interest on the outstanding balance and principal repayment. Early in the term, a larger portion goes toward interest; later, more goes toward principal. The annuity payment formula ensures that all payments are equal, making it easy for borrowers to budget. This tool uses the standard annuity formula: Payment = Principal × (r × (1 + r)^n) / ((1 + r)^n - 1), where r is the monthly interest rate and n is the total number of payments. The result shows the monthly payment, total payment over the entire term, and total interest paid.

1. Enter the total Loan Amount in dollars (or your currency).
2. Enter the Annual Interest Rate as a percentage (e.g., 5 for 5%).
3. Enter the Loan Term in years (e.g., 30 for a 30-year mortgage).
4. Click Calculate Payment to see the monthly annuity payment.
5. The result shows monthly payment, total payment over the term, total interest, and number of payments.
6. Click Reset to return to the default example values.