Someone asked, if I could meet on monday, how can I say that that day is ok?
"Montag passt mir gut"
Is this informal? If so, what would be the formal way of saying that?
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There are many possible answers that are formal. You can say your example as an answer:
"Montag passt mir gut."
But you can also say, if the time has not yet been agreed:
"Am Montag habe ich noch nichts vor. Wir können uns dann treffen. Um welche Uhrzeit?"
Notice: Counter-question leaves an interested impression.
Other possible answer would be:
"Montag ist in Ordnung, wir können uns dann treffen."
"Ja, wir können uns am Montag treffen."
Informal answer would be:
"Montag ist ok"
(especially short answer were informal)