Q&A for How to Calculate Loan Payments

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If I pay extra, is it always applied to the principle?

Community Answer

In most cases you have to tell them you want the money to go to the principle, otherwise they will put it towards the interest.

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Question

What is the monthly repayment for a loan of $798,310 at 6.74% over 360 months?

Community Answer

Loan Amount = $798,310.00 Interest Rate = 6.74% Monthly Payment = $5,172.52 Total Interest paid in 360-month payment = $1,063,796.49

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Question

I have a loan with a balance of $9,500 and payments are $250 per month. Is there a program I can use to calculate the interest on the balance after each payment?

Community Answer

Contact your bank or finance company and they can tell you how much of each payment goes toward the principal and how much is paid in interest.

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Question

I borrowed $150,000. The monthly interest is 4%. I can pay it without term. How to compute payment without loan term?

Community Answer

It is not possible to calculate a loan payment without knowing the term (length) of the loan. If there is not a term set for you, you can either make whatever amount payment you want (keeping in mind that the smaller your payments, the higher the interest you will accumulate), or decide for yourself how long you want to pay it off in and calculate the payments based on that term.

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Question

How do I figure how much my income determines how much I can borrow for a home?

Community Answer

It will be typically be based on your monthly income. The monthly payment should be lower than 30% of your monthly salary.

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Question

What formula can I use to calculate interest paid on a short term (less than a year) loan if I have the amount borrowed and the gross amount repaid within a specified time frame?

Donagan

Top Answerer

If you're referring to the entire repayment period of the loan, just subtract the amount borrowed from the total amount of all the payments. What's left is the interest paid.

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Question

If I would like to take out a loan of R8,000, and I pay R452 per month for 24 months, and R257 per month for 60 months, what is the percentage increase between the repayment of 24 months and 60 months?

Community Answer

The longer you pay a loan, the more interest that gets added. You can go 60 months if that helps you out with the money. You can go 60 months but pay it off in 30 months; it will save you money as well.

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Question

How can the bank give a restructuring program to a loan not paid on time?

Andrew Serrano

Top Answerer

You are not entitled to a loan restructuring unless granted by federal or state law. You agree in your contract that, without fault, you will make said payment on time every month without fail. If they allow an exception, it is solely at the bank's discretion.

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