wikiHow Installment Loan Payment Calculator 1. Determine the loan amount: This is the total amount you will borrow. 2. Determine the interest rate: This is the annual interest rate that will be applied to your loan. 3. Determine the loan term: This is the length of time in which you will repay the loan. 4. Calculate the monthly interest rate: Divide the annual interest rate by 12 to determine the monthly interest rate. 5. Calculate the total number of payments: Multiply the number of years in the loan term by 12 to determine the total number of payments. 6. Calculate the payment amount: Use the following formula to calculate the payment amount: 7. Payment Amount = [Loan Amount x (Monthly Interest Rate x (1 + Monthly Interest Rate)^Total Number of Payments)] / [(1 + Monthly Interest Rate)^Total Number of Payments - 1] Here's an example to help illustrate the process: Loan amount: $10,000 Interest rate: 6% Loan term: 3 years Monthly interest rate: 6% / 12 = 0.5% Total number of payments: 3 years x 12 months/year = 36 payments Payment amount: [$10,000 x (0.5% x (1 + 0.5%)^36)] / [(1 + 0.5%)^36 - 1] = $304.22 So the monthly payment on this loan would be $304.22. Alternatively, you can use an online installment loan payment calculator to quickly calculate your payment amount by inputting your loan amount, interest rate, and loan term. Page