Finance & Business · pattern A, Numeric fields
Enter the amount, rate and term for the monthly payment, total interest, and what a shorter or longer term would change.
M = P·i ÷ (1 − (1 + i)^−n)
i is the monthly rate, the annual rate divided by twelve; n is the number of monthly payments. This is the standard amortising payment formula.
300.57
Each payment covers the interest accrued that month first, and only the remainder reduces the balance. Early on the balance is large, so most of the payment is interest and the loan seems to shrink slowly — which is why overpaying early saves far more than overpaying late, and why a longer term costs disproportionately more in total interest.
If the number is not the part you are stuck on, that is what the service is for — a specialist who explains the working, not just the answer.
These are coursework tools. Nothing here is financial advice, no figure accounts for tax rules in your jurisdiction, and no result should be relied on for a real borrowing or investment decision.