Payment Calculator - Calculator See


Payment Calculator

Determine monthly installment payments for any fixed-rate loan or credit obligation based on loan amount, interest rate, and term length.

Calculator Inputs

$
Principal balance to be repaid.
%
Fixed nominal interest rate.
mo
Number of monthly repayments.

Calculated Results

Periodic Payment (Installment)
$322.67
Total Financed $10,000
Total Interest $1,616
Total Outlay $11,616
Values calculate live as you adjust inputs.

About Payment Calculator

A payment calculator solves for the regular installment required to extinguish a debt balance given a fixed APR and specified number of periods.

What is Payment Calculator?

A payment calculator solves for the regular installment required to extinguish a debt balance given a fixed APR and specified number of periods.

How to Use This Calculator

  1. Input your total balance.
  2. Specify the loan APR.
  3. Choose payment term in months.
  4. The monthly payment updates in real-time.

The Mathematical Formula & Variables

PMT = P * [r(1+r)^n] / [(1+r)^n - 1]

Variables Definition

Symbol / Variable Name Description
PMT Payment Equal monthly installment.
P Loan Balance Amount borrowed.
r Monthly Rate APR / 12.
n Number of Months Loan term in months.

Step-by-Step Worked Example

Scenario: $10,000 personal installment loan for 36 months at 9.5% APR.

  1. Monthly rate r = 0.095 / 12 = 0.0079167.
  2. (1 + r)^36 = (1.0079167)^36 = 1.3281.
  3. Numerator = 0.0079167 * 1.3281 = 0.010515.
  4. Denominator = 1.3281 - 1 = 0.3281.
  5. PMT = $10,000 * (0.010515 / 0.3281) = $320.48.

Result: Monthly installment is $320.48. Total interest paid over 3 years is $1,537.28.

Frequently Asked Questions

How does payment frequency affect total interest?

Switching to bi-weekly payments results in 26 half-payments per year (equivalent to 13 full payments), shaving months off your repayment term.