Monthly loan payment on a $150,000 loan for 15 years with a 5% interest rate

Given:
Loan Amount: $150,000
Loan Terms: 15 years = 180 months = n  (convert years to months)
Interest Rate: 5% =
5/100
= 0.05 = 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 =  
150,000  * 
0.05 / 12
/ 1 – ( 1+
0.05/12
 ) -180

Monthly Loan Payment =  $1,186.19  ( rounded to two decimal places)
Notes:
Total Cost =  Monthly Loan Payment * Number of Payments
Total Cost =  $1,186.19 * 180 =  $213,514.20
Interest Cost =  Total Cost – Loan Amount
Interest Cost =  $213,514.20 – $150,000 =  $63,514.20

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