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Amortization Table – Monthly Payment per $1,000

Amortization Table – Monthly Payment per \$1{,}000 of Principal

What the Table Represents

  • For every \$1{,}000 borrowed, the table lists the level monthly payment required to fully amortize (pay off) the loan over the chosen “Life of the Loan.”
  • “Life of the Loan” (term) columns: 5, 10, 15, 20, 25, 30, 35, and 40 years.
  • Rows show fixed nominal annual interest rates from 5\% to 15\% in half-percentage-point increments.
  • Each number inside the grid = “monthly dollars you must pay for each \$1{,}000 borrowed.”
    Example: At 7\% for 30 years, monthly payment ≈ 6.66 per \$1{,}000.

Mathematical Foundation

  • Core formula for a fully amortizing, fixed-rate loan:
    \text{Payment }(PMT)=\dfrac{rm}{1-(1+rm)^{-N}}\times P
    where
    • P = principal borrowed (here, \$1{,}000)
    • r_m=\dfrac{\text{Annual Rate}}{12} (monthly rate)
    • N = 12\times \text{Loan_Years} (total number of monthly payments)
  • Each table entry is the value of PMT when P=1{,}000 and parameters match the row’s rate and column’s term.

Complete Grid (Dollar Payment per \$1{,}000 Principal)

  • 5-Year Term (60 payments)
    • 5.0% → 18.88 • 5.5% → 19.11 • 6.0% → 19.34 • 6.5% → 19.57 • 7.0% → 19.81 • 7.5% → 20.04 • 8.0% → 20.28 • 8.5% → 20.52 • 9.0% → 20.76 • 9.5% → 21.01 • 10.0% → 21.25 • 10.5% → 21.50 • 11.0% → 21.75 • 11.5% → 22.00 • 12.0% → 22.25 • 12.5% → 22.50 • 13.0% → 22.76 • 13.5% → 23.01 • 14.0% → 23.27 • 14.5% → 23.53 • 15.0% → 23.79
  • 10-Year Term (120 payments)
    • 5.0% → 10.61 • 5.5% → 10.86 • 6.0% → 11.11 • 6.5% → 11.36 • 7.0% → 11.62 • 7.5% → 11.88 • 8.0% → 12.14 • 8.5% → 12.40 • 9.0% → 12.67 • 9.5% → 12.94 • 10.0% → 13.22 • 10.5% → 13.50 • 11.0% → 13.78 • 11.5% → 14.06 • 12.0% → 14.35 • 12.5% → 14.64 • 13.0% → 14.94 • 13.5% → 15.23 • 14.0% → 15.53 • 14.5% → 15.83 • 15.0% → 16.14
  • 15-Year Term (180 payments)
    • 5.0% → 7.91 • 5.5% → 8.18 • 6.0% → 8.44 • 6.5% → 8.72 • 7.0% → 8.99 • 7.5% → 9.28 • 8.0% → 9.56 • 8.5% → 9.85 • 9.0% → 10.15 • 9.5% → 10.45 • 10.0% → 10.75 • 10.5% → 11.06 • 11.0% → 11.37 • 11.5% → 11.69 • 12.0% → 12.01 • 12.5% → 12.33 • 13.0% → 12.66 • 13.5% → 12.99 • 14.0% → 13.32 • 14.5% → 13.66 • 15.0% → 14.00
  • 20-Year Term (240 payments)
    • 5.0% → 6.60 • 5.5% → 6.88 • 6.0% → 7.17 • 6.5% → 7.46 • 7.0% → 7.76 • 7.5% → 8.06 • 8.0% → 8.37 • 8.5% → 8.68 • 9.0% → 9.00 • 9.5% → 9.33 • 10.0% → 9.66 • 10.5% → 9.99 • 11.0% → 10.33 • 11.5% → 10.67 • 12.0% → 11.02 • 12.5% → 11.37 • 13.0% → 11.72 • 13.5% → 12.08 • 14.0% → 12.44 • 14.5% → 12.80 • 15.0% → 13.17
  • 25-Year Term (300 payments)
    • 5.0% → 5.85 • 5.5% → 6.15 • 6.0% → 6.45 • 6.5% → 6.76 • 7.0% → 7.07 • 7.5% → 7.39 • 8.0% → 7.72 • 8.5% → 8.06 • 9.0% → 8.40 • 9.5% → 8.74 • 10.0% → 9.09 • 10.5% → 9.45 • 11.0% → 9.81 • 11.5% → 10.17 • 12.0% → 10.54 • 12.5% → 10.91 • 13.0% → 11.28 • 13.5% → 11.66 • 14.0% → 12.04 • 14.5% → 12.43 • 15.0% → 12.81
  • 30-Year Term (360 payments)
    • 5.0% → 5.37 • 5.5% → 5.68 • 6.0% → 6.00 • 6.5% → 6.32 • 7.0% → 6.66 • 7.5% → 7.00 • 8.0% → 7.34 • 8.5% → 7.69 • 9.0% → 8.05 • 9.5% → 8.41 • 10.0% → 8.78 • 10.5% → 9.15 • 11.0% → 9.53 • 11.5% → 9.91 • 12.0% → 10.29 • 12.5% → 10.68 • 13.0% → 11.07 • 13.5% → 11.46 • 14.0% → 11.85 • 14.5% → 12.25 • 15.0% → 12.65
  • 35-Year Term (420 payments)
    • 5.0% → 5.05 • 5.5% → 5.38 • 6.0% → 5.71 • 6.5% → 6.05 • 7.0% → 6.39 • 7.5% → 6.75 • 8.0% → 7.11 • 8.5% → 7.47 • 9.0% → 7.84 • 9.5% → 8.22 • 10.0% → 8.60 • 10.5% → 8.99 • 11.0% → 9.37 • 11.5% → 9.77 • 12.0% → 10.16 • 12.5% → 10.56 • 13.0% → 10.96 • 13.5% → 11.36 • 14.0% → 11.76 • 14.5% → 12.17 • 15.0% → 12.57
  • 40-Year Term (480 payments)
    • 5.0% → 4.85 • 5.5% → 5.16 • 6.0% → 5.51 • 6.5% → 5.86 • 7.0% → 6.22 • 7.5% → 6.59 • 8.0% → 6.96 • 8.5% → 7.34 • 9.0% → 7.72 • 9.5% → 8.11 • 10.0% → 8.50 • 10.5% → 8.89 • 11.0% → 9.29 • 11.5% → 9.69 • 12.0% → 10.09 • 12.5% → 10.49 • 13.0% → 10.90 • 13.5% → 11.31 • 14.0% → 11.72 • 14.5% → 12.13 • 15.0% → 12.54

Observations & Patterns

  • Payment decreases dramatically as the term lengthens, because principal is repaid more slowly.
    → Example: 5\% rate: 18.88 (5-yr) vs. 4.85 (40-yr), (~74\%) reduction.
  • Payment increases as interest rate rises for a fixed term; effect is stronger on longer terms because interest compounds over more periods.
  • Slope of increase widens at higher rates; e.g., jumping from 14.5\% to 15\% on a 40-yr loan adds 0.41, larger than the 0.28 increment between 5\% and 5.5\%.
  • Break-even insight: If a borrower can afford only a specific payment, the table shows maximum loan size they can carry:
    \text{Max Principal}=\dfrac{\text{Affordable Payment}}{\text{Table Figure per }\$1{,}000}}\times1{,}000.

Practical Uses

  • Quick manual underwriting and affordability checks without a financial calculator or spreadsheet.
  • Mortgage and installment-loan comparisons across terms or in a rising-rate environment.
  • Educational demonstrations of time-value-of-money principles and amortization mechanics.

Worked Example

"How large a 30-year mortgage can I carry if I can spend \$1,500 per month at an annual rate of 6.0\%?"

  1. Locate 30-year, 6.0\% entry → 6.00 per \$1{,}000.
  2. Compute principal:
    \dfrac{1{,}500}{6.00}\times1{,}000 = \$250{,}000.

Relationship to Previous Lessons / Core Finance Concepts

  • Reinforces Present Value/Annuity formula equivalence:
    PMT\times\dfrac{1-(1+rm)^{-N}}{rm}=P.
  • Connects to bond amortization schedules (coupon vs. principal repayment) and to depreciation schedules in accounting.
  • Illustrates sensitivity analysis—a small rate hike can materially affect required payment.

Ethical & Practical Implications

  • Longer terms reduce monthly burden but dramatically increase total interest paid. Borrowers must weigh cash-flow relief against higher lifetime cost.
  • Financial literacy importance: misunderstanding amortization can lead to over-borrowing and potential default.
  • Policy discussions: Some jurisdictions cap term length or mandate disclosure of total interest to improve consumer outcomes.