How to Calculate Monthly Payments - Posted by Ryan Cook
Posted by Ryan Cook on February 09, 2000 at 18:46:34:
I just found this site two days ago… and I have read just about every article I have found… You Guys are great… But I’m still confused about how you calculate the monthly payments on a property… let’s say that you have a property that sells for $10,000 … with $1,000 down for 48 months at 10% int… what would the monthly payment be with the interest… and how do you go about making the actual calculation…
Where rate is the monthly interest rate (divide the annual rate by 12) and n is the number of payment periods. The ^ means that the term (1+rate) is raised to the power of n.
While you don’t necessarily need a financial calculator to compute the monthly payment amount, you will at least need a calculator capable of raising a number to a power to use this formula.
Re: How to Calculate Monthly Payments - Posted by T Jent
Posted by T Jent on February 09, 2000 at 20:50:40:
Get an Amortization Booklet, available at any bookstore for a few bucks. You can look up payments at any amount, interest rate and term instantly. Financial calculators will do the same thing.