# Monthly Payment Options

Create a calculation for estimated financing options using amortized loan equation. Let the Nimbus user enter in the rate (r) and term length (n). Set a function to import the estimate total (P) into the equation. The (A) would be the box that shows the monthly payment on the estimates.

Here's the equation:

A = Payment amount per period

P = Initial principal or loan amount (in this example, $10,000)

r = Interest rate per period (in our example, that's 7.5% divided by 12 months)

n = Total number of payments or periods

The formula for calculating your monthly payment is:

A = P (r (1+r)^n) / ( (1+r)^n -1 )

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