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 · A rent-to-own agreement is a deal in which you commit to renting a property for a specific period of time, with the option of buying it before the lease runs out.

Which Formula Determines The Interest Amount On A Loan Calculate the monthly payment. For tips, see How to Calculate Loan Payments.; Convert the annual rate to a monthly rate by dividing by 12 (6 percent annually divided by 12 months results in a 0.5 percent monthly rate).; Figure the monthly interest by multiplying the monthly rate by the loan balance at the start of the month (0.5 percent times 0,000 equals $500 for the first month).

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