Our online calculator is a simple and effective tool to know what you will be paying this month on a loan afforded to you in the past, including interest.

A business loan repayment or amortization calculator will enable you to find out how much you will be paying monthly, including interest, to repay the loan afforded to you. As part of our Business Calculators we offer a quick way to know what you are paying off this month on your loan.

When you take out a loan from a bank or an individual, and it is a large fee, you will often ask yourself how much you will be paying monthly or per period agreed with the lender. To answer this, a loan amortization calculator is handy for determining what you are going to be paying. This will be based on factors such as interest, amount already paid back and the initial size of the loan. Finally it is interesting for a lender to find out exactly what they are owned by a debtor for the current period.

Note that your interest rate might be better based on your Net Income. We have a handy Net Income calculator here to help you determine what that is.

## How to calculate the monthly payment of a loan back?

Now that we have defined loan amortization, you want to calculate it. For this you will need the following figures :

• Loan Amount : the amount of money in your currency of choice of the loan you have been afforded.
• Interest rate agreed : the amount of interest you pay on your loan. Note that there will be adjustments to the interest rate in some cases. As a result, You may have to calculate individual payment periods.
• Term : this is the amount of time in years that you will have to pay the loan back in. The term is a flexible figure : it may simply be when you plan to pay it back as opposed to when you have to.
• Start Date : The date you start to pay the loan back.

## What is the formula for loan amortization?

With the formula for loan amortization, we want to calculate how much we are going to pay for the next year. For this we multiply the interest rate by the size of the loan and divide it by the formula derived from previous interest and payments

A = i*PV / 1-(1+i)-n

Where A is the payment amount per period, what we want to find out.

i is the interest rate

PV is the size of the loan.

n as the amount of periods already paid.