Monthly loan payment on a $15,000 loan for 60 months with a 4% interest rate

Given:
Loan Amount: $15,000
Loan Terms: 60 months = n
Interest Rate: 4% =
4/100
= 0.04 = r  (convert percent to a decimal)
Monthly Loan Payment Formula:
Monthly Loan Payment =  
Loan Amount  * 
r / 12
/ 1 – ( 1+
r/12
 ) -n

Substitute given values into Monthly Payment Formula:
Monthly Loan Payment =  
15,000  * 
0.04 / 12
/ 1 – ( 1+
0.04/12
 ) -60

Monthly Loan Payment =  $276.25  ( rounded to two decimal places)
Notes:
Total Cost =  Monthly Loan Payment * Number of Payments
Total Cost =  $276.25 * 60 =  $16,575
Interest Cost =  Total Cost – Loan Amount
Interest Cost =  $16,575 – $15,000 =  $1,575

The solution above and other related solutions were provided by the Monthly Loan Payment Application. 

Monthly Loan Payment

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