Amortization formula?

2 Comment(s)

1. The amortization calculator formula is: (1-vn)÷r, where n = number of years, v = 1÷(1+r), and r = interest rate ÷ 100. See also time value of money.

   Divide by (1+r) if a payment is due at the beginning.

   Another method of writing this kind of formula is:

   (see source link for alternate formula)

   where: P = principal amount borrowed, r = periodic interest rate (annual interest rate divided by 12), n = total number of payments (for a 30-year loan with monthly payments, n = 30 years × 12 months = 360), and A = periodic payment.

   earthdrivenforce | Oct 29, 2009 | Reply

2. Take a look at this link:

   It has the formula and an example.

   Danielle B | Oct 31, 2009 | Reply

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