Loan Repayment Calculator
💷 Money & growth. Use the Loan repayment (monthly) formula to find monthly payment, amount borrowed, interest rate, number of months: pick the value you want, type the others, and the answer updates as you go.
r = the yearly interest rate in %, n = the number of monthly payments.
Pick the ○ next to the value you want to find, fill in the others, and it solves as you type.
What each letter means
| Quantity | Unit |
|---|---|
| Monthly payment | £ |
| Amount borrowed | £ |
| Interest rate | % per year |
| Number of months | no unit |
Worked example
Find the monthly payment when Amount borrowed = 10000 £, Interest rate = 5 % per year, Number of months = 60.
Using M = P i1 - (1 + i)^(-n), i = r/1200: Monthly payment = 188.71 £.
Frequently asked questions
What is the formula for Loan repayment (monthly)?
M = P i1 - (1 + i)^(-n), i = r/1200. r = the yearly interest rate in %, n = the number of monthly payments.
What do the letters stand for, and what units are used?
Monthly payment in £, Amount borrowed in £, Interest rate in % per year, Number of months.
How do you calculate monthly payment?
Put the values into M = P i1 - (1 + i)^(-n), i = r/1200. For example, with Amount borrowed = 10000 £, Interest rate = 5 % per year, Number of months = 60, monthly payment = 188.71 £.
Can I solve for a different value?
Yes. In the calculator above, pick the circle next to any value (monthly payment, amount borrowed, interest rate, number of months) and fill in the others: it rearranges the formula for you.
