Monthly loan payment on a $300,000 loan for 60 months with a 7% interest rate

Given:
Loan Amount: $300,000
Loan Terms: 60 months = n
Interest Rate: 7% =
7/100
= 0.07 = 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 =  
300,000  * 
0.07 / 12
/ 1 – ( 1+
0.07/12
 ) -60

Monthly Loan Payment =  $5,940.36  ( rounded to two decimal places)
Notes:
Total Cost =  Monthly Loan Payment * Number of Payments
Total Cost =  $5,940.36 * 60 =  $356,421.60
Interest Cost =  Total Cost – Loan Amount
Interest Cost =  $356,421.60 – $300,000 =  $56,421.60

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