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Here is the formula that we use to calculate the interest and loan total payment.
To calculate the payments and total amount for an amortized loan where you pay back a fixed amount periodically, we use the formula for the monthly payment of an installment loan, which can be calculated using the formula:
Where:
πM is the monthly payment.
πP is the loan principal
πr is the monthly interest rate
πn is the total number of payments
You can use the following to get or set values in the calculator on a website page:
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