Monthly loan payment on a $100,000 loan for 36 months with a 8% interest rate

Given:
Loan Amount: $100,000
Loan Terms: 36 months = n
Interest Rate: 8% =
8/100
= 0.08 = 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 =  
100,000  * 
0.08 / 12
/ 1 – ( 1+
0.08/12
 ) -36

Monthly Loan Payment =  $3,133.64  ( rounded to two decimal places)
Notes:
Total Cost =  Monthly Loan Payment * Number of Payments
Total Cost =  $3,133.64 * 36 =  $112,811.04
Interest Cost =  Total Cost – Loan Amount
Interest Cost =  $112,811.04 – $100,000 =  $12,811.04

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

Monthly Loan Payment

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