Since this loan is paid in monthly installments the. 100000 x 06 12 x 1 06 1212 30 1 06 1212 30 - 1 100000. Monthly payment for 5 year auto loan with a principal.
For loan calculations we can use the formula for the Present Value of an Ordinary Annuity.
The monthly payment formula is based on the annuity formula. The formula used to calculate monthly principal and interest payments on a fixed-rate loan in which the rate and therefore payment never changes looks like this. M L R 1 Rp 1 Rp - 1 M your monthly. Follow the steps below for a detailed guide to using this formula or refer to this quick explanation of each variable.