A P 1rn In this. However this number must be input in the equation as decimal so we divide again by 100. P n1 P n1 rM 1 1 P n 1 P n 1 r M This equation is the basis for all the loan payment formulas.
The formula can be used to help potential home owners determine how much of a monthly payment towards a home they can afford.
Where n is the term in number of months PMT monthly payment i monthly interest rate as a decimal interest rate per year divided by 100 divided by 12 and PV mortgage amount present value. Sales Price or Minimum Listing Price Sellers Net 100 - Com Sales Price or Minimum Listing Price x Sellers Net Sellers Net. Displaystyle Afrac Ltimes r 1- left 1 rright - n A 1 1 rnLr. L - F P 1 1 i P 2 1 i 2.