Online Calculators

# Annuity on $1 Loan Table Creator Annuity Payment Tables Interest Rate (i) : Columns % % Periods (n) : Rows Share this Calculator & Page ## Calculator Use Create a printable table for the annuity (mortgage) payment (PMT) of a borrowed amount of$1. Payment (PMT) is calculated from the formula:

$$PMT = PV\times i \times\left[\frac{(1+i)^n}{(1+i)^n-1}\right]$$

When PV = $1 the equation becomes: $$PMT = \1\times i \times\left[\frac{(1+i)^n}{(1+i)^n-1}\right]$$ where PMT is the recurring, identical, payment for a loan of$1, i is the interest rate in decimal form and n is the number of periods (n ≠ 1). PMT is the Payment to be paid at the end of each equal period on a loan of $1 an Interest Rate i% per period for n Number of Time Periods to payoff the loan or mortgage. Taking out the$1 we simplify to:

$$PMT = i \times\left[\frac{(1+i)^n}{(1+i)^n-1}\right]$$

You can then look up the payment factor in the table and use this value to calculate the annuity payment amount for the series of payments.

For example, if $1 is borrowed at i = 2% interest per time period and the amount is to be paid back in equal amounts over n = 10 time periods then the amount paid back per time period is 0.1113 *$1 = $0.11 rounded to cents. Annuity Payment on$1 Loan
n / i
2.00%
2.25%
2.50%
2.75%
3.00%
1
1.0200
1.0225
1.0250
1.0275
1.0300
2
0.5150
0.5169
0.5188
0.5207
0.5226
3
0.3468
0.3484
0.3501
0.3518
0.3535
4
0.2626
0.2642
0.2658
0.2674
0.2690
5
0.2122
0.2137
0.2152
0.2168
0.2184
6
0.1785
0.1800
0.1815
0.1831
0.1846
7
0.1545
0.1560
0.1575
0.1590
0.1605
8
0.1365
0.1380
0.1395
0.1410
0.1425
9
0.1225
0.1240
0.1255
0.1269
0.1284
10
0.1113
0.1128
0.1143
0.1157
0.1172

Example: You want to borrow $1,000 at an annual interest rate of 3% per year and pay it back over 5 years. How much will you need to pay per year to pay back the loan? 1. Create a table that includes i = 3% and n = 5 (see obove table) 2. Look up PMT to find 0.2184 3. Use it as a factor to calculate$1,000 * 0.2184 = $218.40 which is your payment amount per year Cite this content, page or calculator as: Furey, Edward "Annuity on$1 Loan Table Creator"; CalculatorSoup, https://www.calculatorsoup.com - Online Calculators