SOLVE FOR
PAYMENT
Assumes fixed-rate amortised loan
ROUNDING
2DP
Money usually 2dp
LOAN (£)
L
Amount borrowed
APR (%)
APR
Annual rate
TERM (MONTHS)
N
Total number of payments
PAYMENT (£/MO)
PMT
Used if solving for term/APR
PAYMENTS/YR
12/YR
Default monthly loans
EXTRA (£)
+E
Optional: added to payment
WORKING
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—
—
—
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MONTHLY PAYMENT
READY
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PAGE 1/2
SOLVE FOR
PAYMENT
Fixed-rate amortised loan
ROUNDING
2DP
Money usually 2dp
LOAN (£)
L
Amount borrowed
APR (%)
APR
Annual rate
TERM (MONTHS)
N
Number of payments
PAYMENT (£/MO)
PMT
Used for term/APR
PAYMENTS/YR
12/YR
Default monthly loans
EXTRA (£)
+E
Optional add-on
WORKING
—
—
—
—
—
MONTHLY PAYMENT
READY
—
PAGE 1/2
MAIN FORMULA
PMT = L·i / (1 − (1+i)^−N)
i = periodic rate
N = number of payments
PERIODIC RATE
i = (APR/100) ÷ m
Monthly: m=12
Weekly: m=52
TOTALS
TOTAL = PMT×N
INTEREST = TOTAL − L
Extra reduces term/interest
SOLVE FOR TERM
N = ln(PMT/(PMT−L·i)) / ln(1+i)
Use payment incl. extra
Shows steps on Page 1
WORKED EXAMPLE
L=£5000, APR=6%
N=36, m=12
i=0.06/12=0.005
PMT≈£152.44
NOTE
This is an estimate tool
Real loans may have fees
APR already includes fees
PAGE 2/2