Loan Amortization (Price Table)

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Tap a term to see what it means, or .

Calculate

Example: a loan of 30,000 in 24 monthly instalments, at 1.5% a month. What is the payment, how much interest is paid in total and how does each instalment split between interest and principal? Change the values to work out your own case.

Amount financed P Rate per period i (%) Number of instalments n

Step by step

What each term means

Payment (PMT): The fixed amount of each instalment. It pays the period's interest and, with what is left, reduces the debt.
Amount Financed (P): How much is borrowed, or the cash price.
Interest Rate (i): The rate per period, in the same unit as the instalments: monthly, for monthly instalments. In the formula, as a decimal: 1.5% becomes 0.015.
Present Value Factor (1 − (1 + i)⁻ⁿ): It comes from the sum of the n payments brought to today, a geometric series. With an infinite term, (1 + i)⁻ⁿ goes to zero and the payment is just the interest, P · i.