Results:
A Loan Calculator helps users determine monthly payments for a loan based on the principal amount, interest rate, and the loan term. This is commonly used for mortgages, car loans, and personal loans.
We can create a simple loan calculator that calculates the monthly payment (EMI - Equated Monthly Installment) for the loan. Here's the formula we'll use to calculate the monthly payment:
Loan Payment Formula (EMI):
EMI=P⋅r⋅(1+r)n(1+r)n−1EMI = \frac{P \cdot r \cdot (1 + r)^n}{(1 + r)^n - 1}EMI=(1+r)n−1P⋅r⋅(1+r)n
Where:
- P = Principal loan amount
- r = Monthly interest rate (Annual interest rate divided by 12 and converted to decimal)
- n = Number of payments (loan term in months)
Steps:
- User inputs:
- Principal amount (loan amount)
- Annual interest rate
- Loan term (in years)
- Output:
- Monthly payment (EMI)
- Total payment over the entire loan period
- Total interest paid
Example:
Let’s say the user enters:
- Loan Amount (Principal): $100,000
- Interest Rate: 5%
- Loan Term: 20 years