Monthly loan payment on a $12,000 loan for 60 months with a 9% interest rate

Given:
Loan Amount: $12,000
Loan Terms: 60 months = n
Interest Rate: 9% =
9/100
= 0.09 = 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 =  
12,000  * 
0.09 / 12
/ 1 – ( 1+
0.09/12
 ) -60

Monthly Loan Payment =  $249.10  ( rounded to two decimal places)
Notes:
Total Cost =  Monthly Loan Payment * Number of Payments
Total Cost =  $249.10 * 60 =  $14,946
Interest Cost =  Total Cost – Loan Amount
Interest Cost =  $14,946 – $12,000 =  $2,946

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

Monthly Loan Payment

Related Glossary Terms

Related Applications

Related Solutions