Monthly loan payment on a $100,000 loan for 72 months with a 8% interest rate

Given:
Loan Amount: $100,000
Loan Terms: 72 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
 ) -72

Monthly Loan Payment =  $1,753.32  ( rounded to two decimal places)
Notes:
Total Cost =  Monthly Loan Payment * Number of Payments
Total Cost =  $1,753.32 * 72 =  $126,239.04
Interest Cost =  Total Cost – Loan Amount
Interest Cost =  $126,239.04 – $100,000 =  $26,239.04

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

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