Amortizing payment

A fixed monthly payment calculated to cover the interest on the current balance and repay the principal over the loan term. The formula is M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where P is the principal, r is the monthly rate, and n is the number of payments. The payment amount stays the same throughout the term even though the interest/principal split shifts each month.