Understanding Loan Calculations

Introduction

This guide explains the formulas and concepts behind loan calculations.

Loan Amount (Principal):
The initial amount of money borrowed.
Interest Rate:
The percentage charged by the lender for borrowing the money.
Loan Term:
The length of time you have to repay the loan.
Monthly Payment:
The amount you pay each month to repay the loan.

Monthly Payment (M):
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]
Where:
P = Principal loan amount
i = Monthly interest rate
n = Number of months

January 7, 2025 Converter Finance

This guide explains how to use the Loan Calculator tool to calculate various loan parameters.

Select Calculation Type:
Choose the desired calculation type from the “Select Calculation Type” dropdown.
Enter Input Values:
Enter the input values in the appropriate fields for the selected calculation type.
View Results:
View the calculated results in the output field.

January 6, 2025 Converter Finance

The Loan Calculator is a tool designed to calculate various loan parameters.

Calculate loan parameters easily with the Loan Calculator!