Panama is a community located in the U.S. state of Illinois. It is within both Montgomery and Bond counties. It has a total area of 0.36 square miles at 39°1′50″N 89°31′25″W. The elevation is 591 feet above sea level. As of the 2010 census data, it had a total population of 343. The population density was 908.08/sq mi. Estimated per capita income in 2016 was $18,447. It has Zip code 62077.