Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with over 10 years of experience in financial analysis and planning.
David Chen is a Certified Financial Analyst with over 10 years of experience in financial analysis and planning.
Loan Calculator Payment with Interest
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Loan Payment Formula
PMT = [P * r * (1 + r)^n] / [(1 + r)^n - 1]
Formula Source: Investopedia
- P: Loan Amount
- r: Monthly Interest Rate (Annual Rate / 12)
- n: Total Number of Payments (Term in Years * 12)
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Frequently Asked Questions (FAQ)
What is the loan payment formula? The formula is used to calculate the monthly payment on a loan, taking into account the interest rate, loan amount, and loan term.
How do I calculate loan interest? Interest is calculated using the loan amount, interest rate, and loan term to determine how much you’ll pay in total over the course of the loan.