For example, for a home loan of $200,000 with a fixed yearly interest rate of 6.5% for 30 years, the principal is P=200000, the monthly interest rate is r=0.065/12, the number of monthly payments is N=30\cdot 12=360, the fixed monthly payment equals $1,264.14. This formula is provided using the financial function in a spreadsheet such as Excel. In the example, the monthly payment is obtained by entering either of these formulas:
