The loan calculator featured on this page uses the following formula to calculate repayment figures. And by rearranging that formula see Compound Interest Formula Derivation we can find any value when we know the other three. Finds the Present Value when you know a Future Value the Interest Rate and number of Periods.
Divide your interest rate by 12 interest rates are expressed annually so to get a monthly figure you have to divide it by the number of months in a year 2.
The monthly interest rate r 612 0005 The loan term is 3 years 36 months so n 36 When you put these values into the formula you get the repayment amount The actual amount of your payment will stay the same for the duration of the loan. Calculation factors difference in monthly repayments based on applied loan amount term and difference in interest rates. It can account for compounding periods payment frequency and either a fixed loan term or fixed payback amount. N Number of Periods.