The Loan Payment per Month calculator computes the monthly payment amount, including principal and interest, on a fixed interest loan that, like most standard loans, compounds interest monthly. This equation can be used to compute payment amounts for car loans and other standard personal loans.
INSTRUCTIONS: Choose units and enter the following:
Loan Payment per Month (LP): The payment amount is returned.
This equation is based on the formula: `L*[i*(1+i)^n] / [(1+i)^n - 1]`, which is equivalent to: `P = (r(PV)) /(1-(1+r)^-n)`
The interest term is divided by 12 in this formula to allow the user to enter the interest rate as a percent and the number of periods in months.