Enter Loan Amount ($), Interest Rate (%) and Loan Term (Years) to review monthly payment with this tool. A payment figure depends on the number of installments and interest per installment.
The payment calculator uses the standard loan amortization formula to calculate your monthly payments.
The formula:
| Payment # | Payment | Principal | Interest | Balance |
|---|
Monthly payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1]
P = principal, r = periodic interest rate, n = number of payments.The calculation links Loan Amount ($), Interest Rate (%) and Loan Term (Years) to monthly payment. A payment figure depends on the number of installments and interest per installment. Comparing equal monthly prices without comparing term can hide a higher total cost.
Enter Loan Amount ($), Interest Rate (%) and Loan Term (Years) to review monthly payment with this tool. A payment figure depends on the number of installments and interest per installment.
Calculate a recurring installment from a financed amount, rate and repayment period. Use it to convert a purchase or borrowing scenario into a payment obligation.
A payment figure depends on the number of installments and interest per installment. Comparing equal monthly prices without comparing term can hide a higher total cost.
Prepare Loan Amount ($), Interest Rate (%) and Loan Term (Years). Align the installment frequency with the entered term and compare total scheduled payments as well as the recurring amount.
A payment figure depends on the number of installments and interest per installment. Comparing equal monthly prices without comparing term can hide a higher total cost. The standard relationship assumes a regular fixed-rate schedule. Advance payments, deferred first installments and balloon balances require their own cash-flow treatment.
Use the full settings in the worked-example table. They produce monthly Payment: 188.71. Compare the method and units as well as the displayed number.
The displayed relationship is Monthly payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1] P = principal, r = periodic interest rate, n = number of payments. Align the installment frequency with the entered term and compare total scheduled payments as well as the recurring amount.
The standard relationship assumes a regular fixed-rate schedule. Advance payments, deferred first installments and balloon balances require their own cash-flow treatment. For a transaction or account decision, compare the inputs with the applicable statement, contract or official rules.
Worked payment calculator example. Set Loan Amount ($) = 10000; Interest Rate (%) = 5; Loan Term (Years) = 5. The corresponding output is monthly Payment: 188.71. A payment figure depends on the number of installments and interest per installment.
Calculate a recurring installment from a financed amount, rate and repayment period. Use it to convert a purchase or borrowing scenario into a payment obligation.
Align the installment frequency with the entered term and compare total scheduled payments as well as the recurring amount.
| Field | Example value | Entry check |
|---|---|---|
| Loan Amount ($) | 10000 | Use the amount for this scenario in the currency and period shown by the field. |
| Interest Rate (%) | 5 | Enter a percentage in the form requested by the field, keeping its stated time basis. |
| Loan Term (Years) | 5 | Use the period unit in the field label; months and years are not interchangeable. |
Relationship used for this example: Monthly payment = P × [r(1 + r)^n] ÷ [(1 + r)^n − 1] P = principal, r = periodic interest rate, n = number of payments.
A payment figure depends on the number of installments and interest per installment. Comparing equal monthly prices without comparing term can hide a higher total cost.
| Output | Displayed result |
|---|---|
| monthly Payment | 188.71 |
With these settings, monthly payment is 188.71. Use the same units and calculation mode when reproducing this example.
A payment figure depends on the number of installments and interest per installment. Comparing equal monthly prices without comparing term can hide a higher total cost. The standard relationship assumes a regular fixed-rate schedule. Advance payments, deferred first installments and balloon balances require their own cash-flow treatment.
Replace the illustrative loan amount ($) value (10000) with your own value, then complete the other inputs for the same scenario. Align the installment frequency with the entered term and compare total scheduled payments as well as the recurring amount.