Enter a loan amount, the annual interest rate (APR), and the term to see each month's principal and interest payment, the remaining balance, and the equity built.
This is for learning economic calculation only. Please use a professional calculator to make purchasing decisions. No responsibility is taken for the correctness of this calculation.
Payments are made monthly at the end of each period, with the monthly rate equal to APR ÷ 12.
| Period | Principal Payment | Interest Payment | Net Payment | Balance | Year | Equity |
|---|
How it is calculated. With monthly rate r = APR/12 and n monthly periods, the payment is P·r / (1 − (1+r)−n). Each month, the interest payment is the previous balance times r, the principal payment is the payment minus that interest, and equity is 1 − balance/principal. These agree with Excel's PPMT and IPMT for end-of-period payments.