Finance Calculator
Solve common financial problems including time value of money, loan analysis, and investment comparisons in one versatile tool
Formula
M = P[r(1+r)^n]/[(1+r)^n-1]
This Finance Calculator computes results from your provided inputs using the calculator's underlying model.
Worked Examples
Example 1: Quick Loan Calculation
Problem:Calculate the monthly payment for a $20,000 personal loan at 6% APR for 60 months.
Solution:Using the payment formula:\nP = $20,000\nr = 6% ÷ 12 = 0.5% per month\nn = 60 months\n\nM = $20,000 × [0.005(1.005)^60] / [(1.005)^60 - 1]\nM = $20,000 × [0.005 × 1.3489] / [0.3489]\nM = $20,000 × 0.01933\nM = $386.66/month\n\nTotal payments: $386.66 × 60 = $23,199\nTotal interest: $23,199 - $20,000 = $3,199
Result:$386.66/month | Total interest: $3,199
Example 2: Compare Loan Terms
Problem:Compare a $15,000 loan at 7% for 36 months vs. 48 months.
Solution:36-month term:\nPayment = $463.16/month\nTotal = $16,673.76\nInterest = $1,673.76\n\n48-month term:\nPayment = $359.37/month\nTotal = $17,249.76\nInterest = $2,249.76\n\nDifference:\nShorter term saves $576 in interest\nBut costs $103.79 more per month
Result:36mo: $463/mo, saves $576 | 48mo: $359/mo
Example 3: Determine Maximum Loan Amount
Problem:You can afford $400/month for 60 months at 5.5% APR. What's the maximum loan amount?
Solution:Rearrange the payment formula to solve for P:\nP = M × [(1+r)^n - 1] / [r(1+r)^n]\n\nP = $400 × [(1.00458)^60 - 1] / [0.00458 × (1.00458)^60]\nP = $400 × [0.3116] / [0.00604]\nP = $400 × 51.59\nP = $20,636\n\nYou can afford a loan up to ~$20,600
Result:Maximum loan: $20,636