Originally Posted by
gacajun
PV = Present Value (the amount of the loan)
FV = Future Value (set to 0)
N = Number of Payments
Example, mortgage loan for $100,000 for 15 years at 6% interest rate with monthly payments. Put in the following values:
Payments/year = 12
PV = 100,000
FV = 0
APR = 6
N = 180
Now click on Solve and your Payment (PMT) will show -843.85682804846 or 843.86 per month. The negative sign is a function of the equation used in the calculator, just ignore it for calculation purposes.
Hope this helps.