Ok guys @dilon_perera @Flawless @Yongki
So sorry I gave you wrong formula, the one I gave gives total payment but what I needed is for monthly payment I found one with examples below.
I’ve been trying to do this one but I can’t figure how to calculate this sign ^ ,what the heck is this?
What is my loan payment formula?
If you have an amortized loan, calculating your loan payment can get a little hairy and potentially bring back not-so-fond memories of high school math, but stick with us and we’ll help you with the numbers.
Here’s an example: let’s say you get an auto loan for $10,000 at a 7.5% annual interest rate for 5 years after making a $1,000 down payment. To solve the equation, you’ll need to find the numbers for these values:
- A = Payment amount per period
- P = Initial principal or loan amount (in this example, $10,000)
- r = Interest rate per period (in our example, that’s 7.5% divided by 12 months)
- n = Total number of payments or periods
The formula for calculating your monthly payment is:
A = P (r (1+r)^n) / ( (1+r)^n -1 )
When you plug in your numbers, it would shake out as this:
- P = $10,000
- r = 7.5% per year / 12 months = 0.625% per period (0.00625 on your calculator)
- n = 5 years x 12 months = 60 total periods
So, when we follow through on the arithmetic you find your monthly payment:
10,000 (.00625 x (1.00625^60) / ((1.00625^60) - 1)
10,000 (.00625 x 1.45329) / (1.45329 - 1)
10,000 (.00908306 / .45329)
10,000 (.02003808) = $200.38
In this case, your monthly payment for your car’s loan term would be $200.38.