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As long as you know the principal, loan term and interest rate, you should be able to estimate your monthly payment — and the total interest you will pay. Use an auto loan calculator.
Starting loan balance. Monthly payment. Paid toward principal. Paid toward interest. New loan balance. Month 1. $20,000. $387. $287. $100. $19,713. Month 2. $19,713. $387
For example, with a loan of $15,000, an APR of 5.00% and a term of 5 years, or 60 months, the total interest would be $15,000 x 0.05 x 5, which equals $3,750.
An amortization schedule calculator is often used to adjust the loan amount until the monthly payments will fit comfortably into budget, and can vary the interest rate to see the difference a better rate might make in the kind of home or car one can afford.
For a fully amortizing loan, with a fixed (i.e., non-variable) interest rate, the payment remains the same throughout the term, regardless of principal balance owed. For example, the payment on the above scenario will remain $733.76 regardless of whether the outstanding (unpaid) principal balance is $100,000 or $50,000.
The most typical loan payment type is the fully amortizing payment in which each monthly rate has the same value over time. [6] The fixed monthly payment P for a loan of L for n months and a monthly interest rate c is: = (+) (+)