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The Loan Payment calculator provides the periodic payment amount on a fixed interest loan.
INSTRUCTIONS: Choose units and enter the following:
- (L) Principal Loan Amount
- (i) Periodic Interest Rate
- (n) Number of Periods in the duration of the loan
Loan Payment (P): The calculator returns the fixed periodic payment in U.S. dollars. However, this can be automatically converted to compatible units via the pull-down menu.
The Math / Science
The formula for Loan Payment is:
`P = L*(i*(1+i)^n) / ((1+i)^n - 1)`
where:
- P = Payment per period
- L = Principal
- i = Interest rate per period
Note: for a 30 year fixed interest mortgage, one may get a 6% annual interest rate loan. BUT, the payments are monthly. Therefore the periodic interest rate is 6%/12, which is equal to 0.5%.
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- Current Mortgage Rates:
- 30 Year Fixed Interest Rate: 6.92 %
- 15 Year Fixed Interest Rate: 6.37 %
- 7/6 SOFR ARM: [Invalid Constant]
