 Finance: Loan Calculator Formula Home Finance Financial Terms Money Factor Calculators Loan (typical) Loan (advanced) Canadian Mortgage Lease (typical) Lease (advanced) APR (typical) APR (advanced) Resources Bibliography  Login   Home Membership Magazines Forum Search Member Calculators  Materials  Design  Processes  Units  Formulas  Math Scenario 1: Find the Monthly Payment Loan Amount (C):  Interest Rate % (R):  Number of Months (N):  Monthly Payment (P): Interest rate R% is always a yearly figure. However, in most loan situations it is compounded monthly. In this calculator the monthly payment is calculated by the following formula where r = R/1200: Scenario 2: Find the Interest Rate Loan Amount (C):  Monthly Payment (P):  Number of Months (N):  Interest Rate % (R): For given C, P and N, one can only solve the following equation for r by numerical means. Given the rather smooth behavior of this equation, this calculator employs the Newton-Raphson method with an educated initial guess: Scenario 3: Find the Number of Payments Loan Amount (C):  Interest Rate % (R):  Monthly Payment (P):  Number of Months (N): This calculator figures out the number of months N by the following closed-form expression: Notice that N has to be an integer, so the monthly payment P might be slightly adjusted to satisfy this condition.
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