How To Calculate Monthly Loan Repayment?

[deckbuild 0]

Hi all, sorry if this have been asked before. If let say I take a 30k loan from Maybank for a tenure of 2 years, how do I calculated the monthly payment?

http://info.maybank2u.com.sg/site_functions/rates_lending.aspx#renovation

[dandelion1976 5]

You will need a financial calculator to calculate Monthly Rest Package. Simple Interest (Flat Rate) is simpler. Don't be fool by the low Flat Rate interest, as the effective interest rate is the one that you should used to compare that to Monthly Rest package, many ppl get confused as they are not financially trained and some irresponsible people took advantage of that.

Do a search on Google for Monthly Mortgage Calculator, for monthly rest package the calculation is the same.

Duration (N) = Number of Monthly Repayment

Interest (i) = Monthly Rest Interest

Present Value = Loan Quantum

Future Value = 0

Find PMT

[bepgof 20]

P6/O lever maths syllabus quite 'hopeless' - cover those useful and uncover those useful like these effective int, PMT...

Car loan in Singapore is using 'flat interest rate', which is illegal in the U.S.A

Monthly instalment = A+B. The monthly amount is 'fixed' throughout the loan period

A= payment towards interest

B= payment towards principal

Instalment = (P.I.Y) + P/n

P= loan amount, $

I=interest rate (%)as quoted, not effective interest rate

Y= total number of year for loan

n= Yx12 = total number of instalment

Mortgage loan payment calculation is called 'Annuity due', or term loan.

PV = PMT +PMT((1-(1+r) to power of -(n-1))/r))

This one involves 'effective interest rate' = interest is compounded yearly.

PV = present value of loan amount, or 'outstanding amount'

PMT stands for 'payment' which is monthly instalment amount

r= effective interest rate

n= number of instalments

Want to know more? PM me with email. Will give some notes (hope you can digest) and a spread sheet s/w which can calculate up till 36 instalment by inputting 3 variables (P, Y, I). You can tell from each instalment, how much go to 'interest payment', 'principal payment' and 'outstanding amount'....

These are 'basic' for financial maths.

[kalimantan 6]

30k loan with tenure of 2 years ...

PV = -30000

N = 2 (assume yearly) or 2 x 12 = 24 months

Interest = what did the bank interest rate charge u with ?

set p/y and c/y = 12 (because pay monthly installments)

Let's assume interest rate is 5%, then monthly PMT as what the forum said is the monthly payment

5% = 1316 monthly payment

3% = 1289

1% = 1263

Then of course, you can also calculate the total interest paid using Amortization, etc

I hope my financial calculator did not bluff me :-)

[sweetmint 0]

Hi deckbuild,

I always refer to this easy-to-use loan calculator http://housingloansg.com/hl/calculator.

The calculated results match those provided by kalimantan.

Cheers!