Formula & method
Payment = P × r ÷ (1 − (1+r)⁻ⁿ)
An amortising loan payment covers accrued interest first; the remainder reduces principal.
Assumptions
- Inputs remain in your browser and are not saved.
- Rates are converted to the payment frequency shown.
- Results are rounded for display; internal calculations retain precision.
Example calculation
Example
A $20,000 five-year loan at 7% costs about $396 per month.
Important
Educational estimates only — not financial, tax or legal advice.