What Is The Formula To Calculate Interest On A Loan Understanding Monthly Payment Mortgage Calculators

You are searching about What Is The Formula To Calculate Interest On A Loan, today we will share with you article about What Is The Formula To Calculate Interest On A Loan was compiled and edited by our team from many sources on the internet. Hope this article on the topic What Is The Formula To Calculate Interest On A Loan is useful to you.

Understanding Monthly Payment Mortgage Calculators

Calculating the monthly mortgage payment is the most basic calculation when it comes to mortgages. You can apply the same calculation to loans. Therefore, the mortgage monthly payment calculator is also called the loan payment calculator. To be safe, make sure you stay below forty percent of your net income. For example, 40% of $4,000 goes toward a $1,440 mortgage payment.

Here is the formula for the monthly mortgage payment:

payment = [P(1 + r)n r]/[(1 + r)n – 1]

Here are the amounts you need:

– P means the principal amount of the loan.

– r stands for interest rate. To get the interest rate, divide the interest rate by twelve months because there are twelve months in a year.

– n means the number of payments. Basically, multiply the number of years by twelve months.

Let’s say you want to know the monthly payment on a 30-year mortgage of $100,000 at a 7% interest rate. The interest is 0.00583, which is the interest rate divided by twelve months, while the number of payments is 360 (30 years X 12 months). You have a monthly mortgage payment of $665 per month.

Here is the actual calculation:

Payment is equal [$100,000(1 + .00583)360 x 0.00583] / [(1 + 0 .00583)360 – 1]. Your monthly mortgage payment is $665.30. By the way, 360 is an exponent.

Video about What Is The Formula To Calculate Interest On A Loan

You can see more content about What Is The Formula To Calculate Interest On A Loan on our youtube channel: Click Here

Question about What Is The Formula To Calculate Interest On A Loan

If you have any questions about What Is The Formula To Calculate Interest On A Loan, please let us know, all your questions or suggestions will help us improve in the following articles!

The article What Is The Formula To Calculate Interest On A Loan was compiled by me and my team from many sources. If you find the article What Is The Formula To Calculate Interest On A Loan helpful to you, please support the team Like or Share!

Rate Articles What Is The Formula To Calculate Interest On A Loan

Rate: 4-5 stars
Ratings: 6972
Views: 65957281

Search keywords What Is The Formula To Calculate Interest On A Loan

What Is The Formula To Calculate Interest On A Loan
way What Is The Formula To Calculate Interest On A Loan
tutorial What Is The Formula To Calculate Interest On A Loan
What Is The Formula To Calculate Interest On A Loan free
#Understanding #Monthly #Payment #Mortgage #Calculators

Source: https://ezinearticles.com/?Understanding-Monthly-Payment-Mortgage-Calculators&id=157310

Bài viết đã được tạo 2732

Bài liên quan

Bắt đầu nhập từ khoá bên trên và nhấp enter để tìm kiếm. Nhấn ESC để huỷ.

Trở lên trên