An easy to use online loan monthly payment calculator is presented.
Loan Formula
The monthly payment amount \(P\) to pay off a loan amount \( A \) at the annual interest rate \( r \) is given by
\[ P = \dfrac{ \left(\dfrac{r}{12}\right) \; A }{1 - \left(1 + \left(\dfrac{r}{12}\right)\right)^{-n}} \]
where \( n \) is the number of months to pay off the loan.
The above formula for \(P\) is derived from the mortgage formula developed elsewhere.
It is important to note that this formula assumes that the interest rate is fixed and the payments are made at the end of each month during the term of the loan. Additionally, the formula does not take into account any additional fees or charges that may be associated with the loan.
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