Enter Loan Details
Monthly Payment (before extra)
33,032.58
Example Data
| Example | Principal | Rate (%) | Term (years) | Monthly Payment |
|---|---|---|---|---|
| 1 | 2,000,000.00 | 10.5 | 15 | 22,107.98 |
| 2 | 3,500,000.00 | 12 | 20 | 38,538.01 |
| 3 | 5,000,000.00 | 14 | 25 | 60,188.05 |
Formulas Used
The standard fixed‑rate amortization formula determines the monthly payment needed to repay a loan with constant installments.
- Monthly Rate:
r = APR / 12 - Number of Payments:
n = years × 12 - Monthly Payment:
PMT = P × r × (1 + r)^n / ((1 + r)^n − 1)(ifr = 0thenPMT = P / n) - Per‑period Interest:
I_t = balance_{t-1} × r - Per‑period Principal:
Prin_t = PMT − I_tplus any optional extra payment - Updated Balance:
balance_t = balance_{t-1} − Prin_t
Adding an extra monthly payment increases principal reduction each period, shortens the schedule, and reduces total interest. The final payment is adjusted to exactly clear any remaining balance.