HisabCalc › Banking & money

Annuity Payment Calculator

Find the fixed payment needed to repay a loan or pay out an annuity over a set term at a given interest rate.

Enter your numbers

Loan principal (taka)

Example: 1000000

Annual interest rate percent

Example: 9

Term in years

Example: 5

Payments per year

Result

Currency

Figures are computed on your device; nothing is sent anywhere.

Formula

r = annualRate / 100 / paymentsPerYear; n = years * paymentsPerYear; payment = r == 0 ? principal / n : principal * r / (1 - Math.pow(1 + r, -n)); totalPaid = payment * n; totalInterest = totalPaid - principal

How the calculation works

The calculator converts the annual rate into a per period rate by dividing it by one hundred and by the number of payments a year.

It multiplies the years by the payments per year to get the total number of installments.

It then applies the annuity formula, where the payment is the principal times the periodic rate divided by one minus the interest factor raised to the negative installment count.

Common mistakes

Leaving the rate in percentage form instead of dividing it by one hundred, which produces a completely wrong payment.
Ignoring loan fees and insurance, which are added to the installment and raise the real monthly outgo.

When to use it

Borrowers use it to check whether the monthly installment fits their budget before signing a loan agreement.
Investors use it to work out how much a lump sum pays out each month when it is turned into an annuity.

Worked example

For a loan of 1000000 taka at 9 percent a year over 5 years with 12 payments a year, the monthly payment is 20757 taka, total paid is 1245438 taka and interest is 245438 taka.

Payment 20,758.36

Total paid ৳1,245,501.31

Total interest 245,501.31

Number of payments 60

Common questions

What happens when the interest rate is zero?

With a zero rate the formula cannot divide by zero, so the payment simply becomes the principal split equally across all the installments.

Last updated: 2026-10-03