Monthly payment is the amount paid each month to pay off a loan in a specified time period.
Amount is the amount loaned out.
Interest is the yearly interest rate on the loan.
Number of periods is the duration of the loan.
If Periods Are Monthly is checked than each period is month. If it is not checked than each period is a year.
If Pay at Beginning of Month is checked than the payment will be deducted before calculating the interest. If is not checked the interest will be calculated first.
Example: If you take out a loan for $10,000 at a 3.9% interest rate for five years and you make your payments at the beginning of each month then you would enter the following values:
Amount: 10000
Interest: 3.9
Number of Periods: 5
Periods Are Monthly: Not Checked
Pay at Beginning of Month: Checked
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