**Introduction:** The Amortization Monthly Calculator helps you understand the monthly payment breakdown for your loan, considering principal and interest. It’s a useful tool for financial planning and budgeting.

**Formula:** The calculator utilizes the formula: Monthly Payment = P * [r(1 + r)^n] / [(1 + r)^n – 1], where P is the loan amount, r is the monthly interest rate, and n is the loan term in months.

**How to Use:**

- Enter the loan amount in dollars.
- Input the annual interest rate.
- Specify the loan term in months.
- Click the “Calculate” button.
- View the estimated monthly payment displayed.

**Example:** If the loan amount is $100,000, the annual interest rate is 4%, and the loan term is 36 months, clicking “Calculate” will show a monthly payment of $2,984.62.

**FAQs:**

**Q: How does loan amortization work?**A: Loan amortization distributes payments between principal and interest, with interest decreasing over time.**Q: Can I see a detailed amortization schedule?**A: This calculator provides the monthly payment, but a detailed schedule can be generated with additional tools.**Q: Is the result an exact payment for the entire loan term?**A: Yes, assuming constant interest rates and no additional fees, the result is the fixed monthly payment.

**Conclusion:** Use our Amortization Monthly Calculator to gain insights into your loan payments. Understanding how your payments are distributed over time can empower you to make informed financial decisions.