Solve for any missing loan variable—monthly payment, loan principal, repayment tenure, or interest rate—given the other three.
Standard Fixed-Rate Amortization Formula: Payment = [P × r] ÷ [1 − (1 + r)^−n] Where: • P = Loan Principal amount • r = Monthly interest rate (Annual Nominal Rate ÷ 12 ÷ 100) • n = Loan tenure in total monthly installments Rearranged Solvers: • Solve Principal: P = [Payment × (1 − (1 + r)^−n)] ÷ r • Solve Tenure: n = −ln(1 − (P × r) ÷ Payment) ÷ ln(1 + r) • Solve Rate: Solved numerically via binary search (bisection) to find the exact APR that produces the target payment.
Select "Monthly Payment" and enter 20,000 principal at 6% interest over 60 months:
Select "Loan Principal" and enter 386.66 payment, 6% interest, and 60 months:
Select "Loan Tenure (Months)" and enter 20,000 principal, 6% interest, and 386.66 payment:
Select "Interest Rate (%)" and enter 20,000 principal, 60 months tenure, and 386.66 payment:
Understand how student loan interest accrues during in-school deferment and grace periods, the difference between subsidized and unsubsidized loans, and the long-term cost of interest capitalization.
Use Payment = P × r ÷ (1 − (1 + r)^−n). For 20,000 at 6% over 60 months, that gives 386.66 per month.
Select "Loan Tenure" from the dropdown, then enter the loan amount, interest rate, and your monthly payment. A higher payment shortens the repayment term.
Select "Interest Rate" and enter the loan amount, tenure in months, and monthly payment. Compare the solved rate with what your lender quoted—a higher effective rate usually indicates upfront fees or insurance rolled into payments.
A shorter term has a higher monthly payment but significantly lower total interest. For a 20,000 loan at 6%, a 36-month term costs 1,903.79 in interest, whereas a 72-month term costs 3,864.96. Choose the shortest term that fits comfortably within your monthly budget.
No. It computes pure amortization based strictly on the interest rate, principal, and tenure you provide. Real-world loans may include loan origination fees, closing costs, credit insurance, or property taxes that increase the total borrowing cost.
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