Create a printable table for the annuity (mortgage) payment (PMT) of a borrowed amount of $1. Payment (PMT) is calculated from the formula:

When PV = $1 the equation becomes:

where PMT is the recurring, identical payment for a loan of $1, i is the interest rate in decimal form and n is the number of periods (n ≠ 1). PMT is the Payment to be paid at the end of each equal period on a loan of $1 an Interest Rate i% per period for n Number of Time Periods to payoff the loan or mortgage.

You can then look up the payment factor in the table and use this value to calculate the annuity payment amount for the series of payments.

Example: if $1 is borrowed at i = 2% interest per time period and the amount is to be paid back in equal amounts over n = 10 time periods then the amount paid back per time period is 0.1113 * $1 = $0.11 rounded to cents.

Example Table:

n / i	2.00%	2.25%	2.50%	2.75%	3.00%
1	1.0200	1.0225	1.0250	1.0275	1.0300
2	0.5150	0.5169	0.5188	0.5207	0.5226
3	0.3468	0.3484	0.3501	0.3518	0.3535
4	0.2626	0.2642	0.2658	0.2674	0.2690
5	0.2122	0.2137	0.2152	0.2168	0.2184
6	0.1785	0.1800	0.1815	0.1831	0.1846
7	0.1545	0.1560	0.1575	0.1590	0.1605
8	0.1365	0.1380	0.1395	0.1410	0.1425
9	0.1225	0.1240	0.1255	0.1269	0.1284
10	0.1113	0.1128	0.1143	0.1157	0.1172

Example: You want to borrow $1,000 at an annual interest rate of 3% per year and pay it back over 5 years. How much will you need to pay per year to pay back the loan?

• Create a table that includes i = 3% and n = 5 (see above table)
• Look up PMT to find 0.2184
• Use it as a factor to calculate $1,000 × 0.2184 = $218.40 which is your payment amount per year