HOW IT IS CALCULATED
Estimate a fixed monthly loan payment
Calculate the fixed payment for an amortizing loan using principal, annual rate and term.
Instant resultClear formulaRuns locally
01Values
02P × r × (1+r)^n ÷ ((1+r)^n − 1)
03Result
The rate is converted to a monthly rate and the term to months.
A longer term lowers payments but can increase total interest
Lower monthly payments spread repayment over more interest-bearing periods.
02
In short
What logic does the calculator use?
P × r × (1+r)^n ÷ ((1+r)^n − 1)
Example?
The rate is converted to a monthly rate and the term to months.