Total amount paid with interest is calculated by multiplying the monthly payment by total months. Total interest paid is calculated by subtracting the loan.
How Banks calculate interest on your Loan Account
The rate argument is the interest rate per period for the loan. For example, in this formula the 17% annual interest rate is divided by 12, the number of months.
Annual interest rate = %; Length of the loan = 6 years. Use Excel to calculate the total interest on a car loan paid monthly given the following values.
Or, if you are are already making payments, try increasing the amount. The new calculation will show you how your loan balance can change. Looking for more tips. Formula for EMI Calculation is - ; P x R x (1+R)^N / [(1+R)^N-1] where- ; P = Principal loan amount ; N = Loan tenure in months ; R = Monthly interest rate. If you take out a $, loan from the bank and the loan agreement stipulates that the interest rate on the loan is 4% simple interest, this means that you.