Loan payment calculator

Monthly payment on an amortizing loan such as a car loan or mortgage, with a yearly schedule. Related lesson: Topic 3.2.

Formula

M = \frac{P \cdot i}{1 - ( 1 + i ) ^{- n}}

i = annual rate ÷ 12; n = number of monthly payments.

Inputs

Loan amount

Annual interest rate (APR)

Term (months)

Example: An $18,000 car loan at 7% for 5 years.

Enter values to see the result and working.