# Figuring Out Payment

Discussion in 'Business Operations' started by bob, Mar 8, 2003.

1. ### bobLawnSite Platinum Memberfrom DEMessages: 4,260

How do figure out a loan payment using a handheld calculator? Principal, intrest, and length (months). Please give an example.

2. ### 1st Class LawnsLawnSite Memberfrom Raleigh,NCMessages: 37

Bob,
I don't know how to post a link but, do a search for (coastalfcu.org) Coastal Federal Credit Union. Put your mouse on "Mortgage Center" , a drop down menu will appear. Click on mortgage calculator.
I hope this helps.
James
1st Class Lawn Service

3. ### bobLawnSite Platinum Memberfrom DEMessages: 4,260

Did you acually read my post?

4. ### 1st Class LawnsLawnSite Memberfrom Raleigh,NCMessages: 37

Bob,
Sorry,
I did read your post. I guess I couldn't believe what I was reading was true.
Good luck figuring a amortization schedule on a calculator. That has probably not been done in years.

James

5. ### ABMLawnSite Memberfrom Traverse City, MIMessages: 15

Lets say you have a loan for \$1000.00 (principle) over 1 year (leangth) at 20% (interest rate).

Take the interest rate (.20) and divide it by 12 to get the monthly interest rate... .01666666 (for ease we'll call it .016 or 1.6% per month.)

Multiply the principle amount (1000) by the monthly interest rate (1.6%) to get the monthly interest amount..... \$16.00

Take the principle amount (1000) and divide by 12 to get the principle payment amount..... \$83.33

Take this (83.33) and add the interest amount (16.00) to get your monthly payment... \$99.33

Hope this helps

6. ### lsylvainLawnSite Senior Memberfrom Sarasota/Bradenton, FLMessages: 779

Kay here you go. Trust me this is the right way to do it. (I'm almost a CPA)

Pmt = Principle / ( ( 1 - ( 1 / ( 1 + (APR / 12))^#months))/(APR/12)

EG.

\$10000 Principle
6% APR
36 months

The best way to go about it if figure your monthly rate first
=.06/12 = .005

Add 1 to that = 1.005

raise that to the number of months 1.005^36 = 1.196680525

then divide 1 by that number 1/1.196680525 = .835644919

then subtract that # from 1 = 1 - .835644919 = .164355081

then divide that number by the monthly rate

.164355081 / .005 = 32.87101624

Then divide the principle by that number

10000 / 32.87101624 = 304.23 per month

hope this helps.

You could probable also find a chart on the net try searching for
"present value of an annuity" just divide the principle by the number in the chart.

Also if you have excel or Works. goto insert:function:financial and there will be a function that calculates your payment for you. Just make sure you use a monthly interest rate and not the yearly or your payment will be astronomical.

Hope this helps

7. ### bobLawnSite Platinum Memberfrom DEMessages: 4,260

I don't understand this sentence.
Does that mean 1.005 to the 36th power?
If so , can I do that on a normal calculator?

8. ### dougaustreimLawnSite Senior Memberfrom Brookings SDMessages: 488

Almost every banks web site has a calculator for this as do most home financial software packages.

When it is so easy to find a computer calculator to do if for you, why make it difficult.

Doug
Austreim Landscaping

9. ### bobLawnSite Platinum Memberfrom DEMessages: 4,260

I have no problem finding web sites with built in calculators. I need to figure out some equations in the field. My computer won't reach must past the desk that it sits on!

10. ### Jon99LawnSite Senior Memberfrom IllinoisMessages: 375

Buy yourself a PDA and the software....