`P = L*(i*(1+i)^n) / ((1+i)^n - 1)`

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The Loan Payment calculator provides the periodic payment amount on a fixed interest loan.  

INSTRUCTIONS: Choose units and enter the following:

• (L) Principal Loan Amount 
• (i) Periodic Interest Rate
• (n) Number of  Periods in the duration of the loan

Loan Payment (P):  The calculator returns the fixed periodic payment in U.S. dollars.  However, this can be automatically converted to compatible units via the pull-down menu.

The Math / Science

 The formula for Loan Payment is:

`P = L*(i*(1+i)^n) / ((1+i)^n - 1)`

where:

• P = Payment per period
• L = Principal 
• i = Interest rate per period

Note: for a 30 year fixed interest mortgage, one may get a 6% annual interest rate loan.  BUT, the payments are monthly.  Therefore the periodic interest rate is 6%/12, which is equal to 0.5%.

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  • 15 Year Fixed Interest Rate: 5.77 %
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