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# Calculate car loan payments with interest easily using these step-by-step instructions

Calculating car loan payments with interest helps you determine how much you’ll need to budget for each month. Whether you’re considering a new or used car, understanding the loan payment calculation process is essential to making informed financial decisions.

To calculate car loan payments with interest, you need to know several key pieces of information. First, you’ll need the loan amount, which is the total amount of money you’re borrowing to purchase the car. Second, you’ll need the interest rate, which is the percentage of the loan amount that you’ll need to pay as interest each year. Finally, you’ll need the loan term, which is the total number of months you’ll have to repay the loan.

Using this information, you can calculate the monthly car loan payment by plugging the loan amount, interest rate, and loan term into a loan payment calculator, or by using a formula. The formula is: monthly payment = (loan amount * interest rate) / (1 – (1 + interest rate)^(-loan term)). This calculation takes into account the interest that accrues over time and provides you with an accurate estimate of your monthly payments.

By calculating your car loan payments with interest, you can better understand the financial commitment you’re making and plan your budget accordingly. This information can help you determine if you can comfortably afford the monthly payments and if the car is the right fit for your financial situation. Remember to consider other expenses such as insurance, maintenance, and fuel costs when budgeting for a car loan, and always compare multiple loan options to find the best terms and interest rates.

## Tips for Calculating Car Loan Payments

When it comes to buying a car, most people require a loan in order to make the purchase. Understanding how to calculate car loan payments with interest is essential to ensure that you can afford the monthly payments without causing financial strain.

### 1. Gather all the necessary information

Before you start calculating your car loan payments, you’ll need to gather the following information:

• The total loan amount
• The interest rate
• The loan term (in months)

Having this information on hand will make the calculation process much easier.

### 2. Use an online car loan calculator

One of the easiest ways to calculate car loan payments with interest is to use an online car loan calculator. These calculators are widely available and can quickly provide you with an estimate of your monthly payments. Simply input the required information, and the calculator will do the math for you.

### 3. Use the loan payment formula

If you prefer to calculate car loan payments manually, you can use the following formula:

Monthly payment = P * (r(1+r)^n)/((1+r)^n-1)

Where:

• P is the principal (loan amount)
• r is the monthly interest rate (annual interest rate divided by 12)
• n is the total number of payments (loan term in months)

By plugging in the values for P, r, and n, you can calculate your monthly car loan payment.

Keep in mind that car loan payments are not the only cost associated with owning a car. You’ll also need to budget for insurance, registration, maintenance, and fuel costs. It’s important to factor in these additional expenses to get a more realistic picture of what you can afford.

### 5. Shop around for the best interest rate

The interest rate on your car loan can have a significant impact on your monthly payments. Be sure to shop around and compare rates from different lenders to find the best deal. Even a slight difference in interest rate can save you a significant amount of money over the life of the loan.

By following these tips and accurately calculating your car loan payments with interest, you can budget wisely and make an informed decision about your car purchase.

## Understanding Interest Rates on Car Loans

When you decide to finance a car, it is important to understand how the interest rates on car loans work. The interest rate is the percentage that a lender charges you for borrowing money. It is based on the principal amount of the loan, the length of the loan term, and your creditworthiness.

To calculate car loan payments with interest, you need to know the interest rate, the loan amount, and the loan term. The interest rate will determine how much additional money you will be paying on top of the principal amount borrowed. The loan term is the duration over which you will be making payments.

Calculating the interest on a car loan can be done using various formulas. One of the most common methods is the simple interest formula, which is calculated by multiplying the interest rate by the loan amount, and then multiplying it again by the loan term. This will give you the total interest paid over the life of the loan.

Once you have calculated the interest, you can then determine the monthly payment by dividing the total loan amount plus interest by the number of months in the loan term. This will give you an idea of how much you will need to budget each month for your car loan payments.

It is important to shop around and compare interest rates from different lenders before choosing a car loan. A lower interest rate can save you money in the long run, as it will result in lower monthly payments and less interest paid over the life of the loan. Additionally, having a good credit score can help you secure a lower interest rate.

Understanding how interest rates work on car loans can help you make informed decisions when it comes to financing a car. By calculating the interest and knowing what your monthly payments will be, you can budget accordingly and ensure that you can comfortably afford your car loan.

## Things to Consider Before Applying for a Car Loan

Before you apply for a car loan, there are several important factors to consider. Understanding these factors will help you make informed decisions and ensure that you can comfortably manage your car loan payments with interest.

Before taking on a car loan, it’s essential to determine how much you can afford to borrow. Consider your current income, expenses, and financial obligations. Use online calculators or consult with a financial advisor to ensure that your car loan payments with interest fit comfortably within your budget.

### 2. Research different loan options

Take the time to research different car loan options available to you. Compare interest rates, loan terms, and repayment options from various lenders. Look for loans with favorable terms and conditions that match your financial goals and needs. Understanding the terms of your loan will help you calculate your car loan payments accurately.

Remember, a longer loan term may result in lower monthly payments but may also lead to paying more interest over the life of the loan. Consider the trade-off between lower monthly payments and the total cost of the loan when making your decision.

Also, check your credit score before applying for a car loan. A higher credit score can lead to better interest rates and loan terms. If your credit score is not ideal, you may want to work on improving it before applying for a loan.

In conclusion, take the time to consider these factors before applying for a car loan. By calculating your budget and researching your loan options, you can ensure that you make a well-informed decision and find a car loan that fits your financial situation.

## Determining the Total Cost of a Car Loan

When securing a car loan, it’s important to understand the total cost that you will be paying over the course of the loan term. This total cost includes both the principal amount borrowed and the interest that is charged on the loan.

To calculate the total cost of a car loan, you will need to consider the loan amount, the interest rate, and the loan term.

### Loan Amount

The loan amount is the total amount you plan to borrow to purchase the car. This amount does not include any down payment or trade-in value. It represents the initial amount that will be financed by the lender.

### Interest Rate

The interest rate is the cost of borrowing the money, expressed as a percentage. It is determined by the lender based on factors such as creditworthiness, loan term, and prevailing market rates.

When calculating the total cost, be sure to use the annual interest rate rather than any other periodic rate.

### Loan Term

The loan term is the length of time over which you will repay the loan. It is typically measured in months or years. A longer loan term will result in lower monthly payments but a higher total cost due to the additional interest paid over time.

Once you have gathered the loan amount, interest rate, and loan term, you can use a loan calculator or a mathematical formula to determine the total cost of the car loan. This will give you a clear understanding of how much you will be paying in total, including both the principal and the interest.

Keep in mind that the total cost calculated is an estimate, as it assumes that the interest rate will remain constant throughout the loan term. In reality, interest rates may fluctuate, which can impact the final cost.

By understanding the total cost of a car loan, you will be able to make informed decisions about your borrowing and budgeting. It is always wise to compare different loan offers and terms to find the most favorable option that fits your financial situation.

## Steps to Calculate Monthly Car Loan Payments

Calculating monthly car loan payments with interest is a crucial step in managing your finances and understanding the total cost of your loan. By following these steps, you can determine the monthly payments on your car loan:

### Step 1: Gather the necessary information

Before you can calculate your monthly car loan payments, you will need to gather the following information:

 Loan amount The total amount of money you borrowed to purchase the car. Interest rate The annual interest rate applied to your car loan. Loan term The length of time, typically in months, over which you will repay your car loan.

### Step 2: Convert the annual interest rate to a monthly rate

Since car loan payments are typically calculated on a monthly basis, you need to convert the annual interest rate to a monthly rate. Divide the annual interest rate by 12 to get the monthly rate.

### Step 3: Calculate the monthly interest rate

Multiply the monthly rate (from step 2) by the loan amount to calculate the monthly interest amount.

### Step 4: Determine the number of months

Next, multiply the loan term by 12 to determine the total number of months you will be repaying the loan.

### Step 5: Calculate the monthly car loan payment

Use the following formula to calculate the monthly car loan payment:

Monthly Payment = Loan Amount × Monthly Interest Rate / (1 − (1 + Monthly Interest Rate)^(-Number of Months))

Plug in the numbers you gathered in step 1, 3, and 4 into the formula above to calculate the monthly car loan payment. The result will be the amount you need to pay each month to fully repay your car loan with interest.

By following these steps, you can accurately calculate your monthly car loan payments, allowing you to plan your budget and make informed financial decisions.

## Calculating Car Loan Payments with a Loan Calculator

When purchasing a car with a loan, it’s important to understand how the interest will affect your monthly payments. By using a loan calculator, you can easily determine what your car loan payments will be.

To calculate car loan payments with interest, you’ll need a few key pieces of information:

• The loan amount: This is the total amount you’re borrowing to purchase the car.
• The interest rate: This is the annual interest rate on the loan.
• The loan term: This is the length of time, usually in months, that you’ll be making payments on the loan.

Once you have these details, you can use a loan calculator to determine your monthly payments. Simply enter the loan amount, interest rate, and loan term into the calculator, and it will provide you with an estimated monthly payment.

Keep in mind that the interest rate will impact the total amount you’ll pay over the life of the loan. Higher interest rates will result in higher monthly payments and more interest paid over time. It’s important to shop around for the best interest rate to ensure you’re getting the most favorable terms for your car loan.

Calculating car loan payments with interest allows you to budget and plan for your future financial obligations. By understanding the impact of interest on your loan payments, you can make informed decisions and choose a car loan that fits within your budget.

Using a loan calculator is a quick and easy way to determine what your car loan payments will be with interest. Make sure to gather all the necessary information before using the calculator, and remember to consider the interest rate in relation to your overall financial goals.

## How to Use an Interest Rate Calculator

Calculating car loan payments with interest can be a complex process, but with the help of an interest rate calculator, it becomes much simpler. This tool allows you to quickly determine the monthly payments on a car loan based on the principal amount, the interest rate, and the loan term.

### Step 1: Gather the necessary information

Before using the interest rate calculator, make sure you have the following information:

• The loan amount or principal: This is the total amount of money you borrowed for the car.
• The annual interest rate: This is the annual interest rate on the car loan.
• The loan term: This is the length of time, in years, that you will be repaying the loan.

### Step 2: Input the information into the calculator

Once you have gathered all the necessary information, input it into the interest rate calculator. You will typically find fields where you can enter the loan amount, interest rate, and loan term. Some calculators may also require additional details such as down payment or trade-in value.

### Step 3: Calculate the car loan payments

After entering the information, click on the calculate or calculate payment button to determine the monthly car loan payments. The calculator will use the entered values to compute the monthly payments, taking into account the interest rate and loan term.

The calculator will provide you with the monthly payment amount, as well as the total amount you will end up paying over the course of the loan. It may also show you an amortization schedule, which breaks down each payment into principal and interest portions.

Using an interest rate calculator takes the guesswork out of calculating car loan payments. It allows you to explore different loan terms and interest rates to find the most suitable option for your budget. By understanding how to use this tool, you can make informed decisions when it comes to financing your car purchase.

Loan Amount Interest Rate Loan Term Monthly Payment Total Payment
\$20,000 5% 5 years \$377 \$22,620
\$15,000 4.5% 3 years \$439 \$15,804
\$25,000 6% 7 years \$377 \$31,716

## Exploring Different Loan Terms and Their Impact on Payments

When it comes to financing a car, the loan term plays a crucial role in determining the overall cost of the vehicle. Understanding how different loan terms can affect the monthly payments is important for making an informed decision about your car purchase. In this article, we will explore the impact of loan terms on payments and discuss how to calculate car loan payments with interest.

### What is a Loan Term?

A loan term refers to the duration over which a borrower agrees to repay a loan amount. It is typically expressed in months, such as 36, 48, or 60 months. The loan term directly impacts the size of the monthly payments and the overall cost of the loan.

### Calculating Car Loan Payments with Interest

To calculate car loan payments with interest, you need to consider the loan term, interest rate, and the loan amount. The formula for calculating monthly car loan payments is as follows:

Car Loan Payment Calculation Formula
Monthly Payment = (Loan Amount * Monthly Interest Rate) / (1 – (1 + Monthly Interest Rate)^(-Loan Term))

The monthly interest rate can be calculated by dividing the annual interest rate by 12. For example, if the annual interest rate is 6%, the monthly interest rate would be 0.06 / 12 = 0.005.

By plugging in different loan terms into the formula, you can see how the duration of the loan affects the monthly payments. Generally, longer loan terms result in lower monthly payments but higher overall interest costs. On the other hand, shorter loan terms lead to higher monthly payments but lower overall interest costs.

It is essential to find a balance between the loan term and the monthly payment that is manageable for your financial situation. Consider your budget, income, and other financial obligations when selecting the loan term that works best for you.

In conclusion, understanding the impact of loan terms on car loan payments is crucial for making an informed decision about your financing options. By calculating car loan payments with interest using the provided formula, you can evaluate the affordability of different loan terms and select the option that aligns with your financial goals.

## What is Amortization and How Does it Affect Car Loan Payments?

When you borrow money to finance a car purchase, the loan agreement typically includes interest, which is the cost of borrowing the money. To understand how interest affects your car loan payments, it’s important to understand the concept of amortization.

Amortization is the process of paying off a loan through regular payments over a set period of time. Each payment consists of both principal (the amount you borrowed) and interest (the cost of borrowing).

When you calculate car loan payments with interest, you’ll need to consider the loan term, interest rate, and loan amount. The interest rate is usually expressed as an annual percentage rate (APR) and represents the cost of borrowing over the course of a year.

### How to Calculate Car Loan Payments with Interest

To calculate car loan payments with interest, you can use a formula called the amortization formula. This formula takes into account the loan amount, interest rate, and loan term to determine the monthly payment.

Here’s the formula:

Monthly Payment = (Loan Amount * Monthly Interest Rate) / (1 – (1 + Monthly Interest Rate) ^ (-Loan Term))

Let’s break down the formula:

• Loan Amount: This is the total amount of money you borrowed to finance the car purchase.
• Monthly Interest Rate: To convert the annual interest rate to a monthly rate, divide the APR by 12.
• Loan Term: This is the length of time over which you’ll repay the loan (e.g., 36 months, 48 months).

By plugging in the values for loan amount, interest rate, and loan term into the formula, you can calculate the monthly car loan payment with interest.

It’s important to note that when you make a car loan payment, a portion of it goes towards the principal, reducing the amount you owe, while the rest goes towards the interest. As you make more payments over time, the proportion of the payment that goes towards the principal increases, and the portion that goes towards interest decreases.

Understanding how amortization works can help you make informed decisions when taking out a car loan. By calculating car loan payments with interest, you can estimate your monthly payment and plan your budget accordingly.

## Tips for Negotiating the Best Interest Rates on a Car Loan

When it comes to financing a new car, getting the best interest rate on your loan can save you a significant amount of money in the long run. Here are some tips on how to negotiate the best interest rates for your car loan:

1. Research and compare interest rates: Before going to a dealership or applying for a loan, it’s important to research and compare interest rates from multiple lenders. Online tools and websites can help you find the current interest rates offered by various lenders. By comparing rates, you can identify the lenders offering the lowest interest rates for car loans.
3. Shop around and negotiate: Don’t settle for the first interest rate you’re offered. Shop around and get quotes from different lenders. You can use these quotes as leverage to negotiate a lower interest rate. Keep in mind that lenders may be willing to lower their rates to secure your business, especially if you have a good credit score and a strong financial profile.
4. Consider a shorter loan term: A shorter loan term typically comes with a lower interest rate. While longer loan terms may have lower monthly payments, they often come with higher interest rates. If you can afford it, opting for a shorter loan term can save you money on interest payments over the life of the loan.
5. Make a larger down payment: Putting down a larger down payment can help you secure a lower interest rate on your car loan. Lenders may be more willing to offer a lower rate if you have a substantial down payment, as it reduces their risk. Additionally, a larger down payment can help you reduce the amount you need to borrow, which can also lead to lower interest rates.
6. Consider getting pre-approved: Before visiting a dealership, consider getting pre-approved for a car loan. This involves applying for a loan and getting approved by a lender for a specific amount. Having a pre-approved loan can give you more bargaining power when negotiating the terms of your car purchase, including the interest rate.
7. Read the fine print: Before signing any loan agreement, make sure to carefully read the terms and conditions, including the interest rate. Pay attention to any additional fees or charges that may be hidden in the agreement. It’s important to fully understand the terms of your loan to ensure you’re getting the best interest rate and avoiding any unnecessary costs.

By following these tips, you can improve your chances of negotiating the best interest rates on your car loan. Taking the time to research, compare rates, and improve your credit score can save you money and ensure you’re getting the most favorable terms for your car loan.

## Considering Down Payments and Their Effect on Car Loan Payments

When looking to purchase a car, it’s important to consider the impact of down payments on car loan payments. A down payment is a lump sum of money that you pay upfront, reducing the total amount you need to borrow. This can have a significant effect on your monthly car loan payments.

### How Down Payments Affect Car Loan Payments

The more money you can put towards a down payment, the lower your monthly car loan payments will be. This is because the down payment reduces the principal amount of the loan, meaning there is less money that needs to be paid back over time. As a result, the interest charged on the loan is calculated on a smaller balance, leading to lower monthly payments.

For example, let’s say you’re purchasing a car for \$20,000 and you make a 20% down payment of \$4,000. This means you will only need to borrow \$16,000. If you have an interest rate of 5% and a loan term of 5 years, your monthly car loan payments would be calculated based on the \$16,000 loan amount instead of the full \$20,000. This can result in significant savings over the life of the loan.

### How to Calculate Car Loan Payments with a Down Payment

To calculate your car loan payments with a down payment, you can use a car loan calculator or a simple formula:

Loan Amount = Car Purchase Price – Down Payment

Once you have the loan amount, you can use it to calculate the monthly payments by considering the interest rate and loan term. There are various online calculators available that can help you with these calculations.

It’s important to remember that while a larger down payment can lead to lower monthly payments, it’s essential to consider your own financial situation and goals. You may choose to make a smaller down payment to preserve cash flow or allocate funds to other expenses. It’s important to find a balance that works for you.

In conclusion, when considering car loan payments with interest, taking the time to calculate the effect of down payments is crucial. By understanding how down payments impact the loan amount and subsequent monthly payments, you can make an informed decision about your car purchase and financial health.

## How Your Credit Score Impacts Car Loan Payments

When it comes to financing a car, your credit score plays a crucial role in determining the interest rate you will be offered. The interest rate, in turn, directly affects the amount of your monthly car loan payments. Understanding how your credit score impacts car loan payments is essential before you start your car buying journey.

### Calculating Interest on Car Loan Payments

The first step in determining your car loan payments is to calculate the interest. The interest rate is assigned based on your credit score. The higher your credit score, the lower the interest rate you are likely to receive. On the other hand, if you have a low credit score, lenders might consider you a higher-risk borrower, resulting in a higher interest rate.

### How to Calculate Car Loan Payments with Interest

Once you know the interest rate, you can move on to calculating your car loan payments. The formula used to calculate car loan payments with interest is:

• M = P * (r * (1+r)^n) / ((1+r)^n – 1)

Where:

• M is the monthly car loan payment
• P is the principal amount (the total loan amount)
• r is the monthly interest rate (annual interest rate divided by 12)
• n is the number of monthly payments

By plugging in the values for P, r, and n into the formula, you can calculate the monthly car loan payment you will need to make.

Keep in mind that the interest rate assigned to you will vary depending on your credit score and the lender you choose. Shopping around for the best interest rate is advisable to ensure you get the most favorable terms for your car loan.

## The Role of Car Loan Origination Fees in Overall Costs

When considering a car loan, it’s important to factor in not just the interest rate and monthly payments, but also the loan origination fees. Car loan origination fees can have a significant impact on the overall cost of your loan.

Loan origination fees are typically charged by lenders to cover the costs of processing your loan application and creating the loan agreement. These fees are usually a percentage of the total loan amount and are added to the principal balance of your loan.

For example, let’s say you are purchasing a car for \$20,000 and your lender charges a 1% origination fee. This means you would have to pay an additional \$200 when you take out the loan. While this may not seem like a large amount, it can add up over the life of the loan.

Origination fees are typically paid upfront as part of the loan closing costs, but some lenders may allow you to roll them into the loan amount. Keep in mind that if you choose to roll the fees into the loan, you will end up paying interest on them as well.

To calculate the impact of origination fees on your loan, you can use a car loan calculator that allows you to input the loan amount, interest rate, and any additional fees. This will give you a more accurate estimate of what your monthly payments will be and how much you will ultimately pay for your car.

It’s important to shop around and compare loan offers from different lenders to find the best deal. While a lower interest rate may seem attractive, make sure to consider the origination fees as well. Sometimes a slightly higher interest rate with no or lower origination fees may be a better option for you in the long run.

In conclusion, don’t forget to take into account the impact of car loan origination fees when calculating the overall cost of your loan. These fees can add up and significantly affect your monthly payments and the total amount you pay for your car. Make sure to factor them in when comparing loan offers and choosing the best option for your financial situation.

## Tips for Paying Off Your Car Loan Faster

Once you have calculated your car loan payments with interest, you may be wondering how to pay off your loan faster. There are several strategies you can use to accelerate the repayment process and become debt-free sooner. Here are some tips to help you pay off your car loan quicker:

### 1. Make Extra Payments

One of the most effective ways to pay off your car loan faster is to make extra payments whenever possible. By paying more than your required monthly payment, you can reduce the overall interest you pay and shorten the loan term. Consider allocating any extra income, such as bonuses or tax refunds, towards your car loan.

### 2. Round Up Your Payments

Another simple strategy is to round up your car loan payments to the nearest hundred or even thousand. For example, if your monthly payment is \$275, consider paying \$300 or \$350 instead. This small but consistent overpayment can add up over time and help you save on interest.

Remember, before making any extra payments, check with your lender to ensure that there are no prepayment penalties or restrictions.

By following these tips and finding ways to allocate extra funds towards your car loan, you can repay the loan faster and potentially save money on interest. Be sure to stay disciplined and consistent with your payments to achieve financial freedom.

## Understanding the Impact of Refinancing on Car Loan Payments

When it comes to car loans, one factor that often has a significant impact on monthly payments is the interest rate. Higher interest rates can mean higher monthly payments, while lower interest rates can result in savings. Refinancing a car loan can be a smart financial move that allows borrowers to take advantage of lower interest rates and potentially lower their monthly payments.

Refinancing a car loan involves replacing your current loan with a new one, typically with more favorable terms. The process allows borrowers to secure a lower interest rate, extend the loan term, or change other aspects of the loan to better suit their financial situation.

One of the main reasons borrowers choose to refinance their car loans is to reduce their monthly payments. By securing a lower interest rate, borrowers can lower the amount of interest they pay over the life of the loan. This reduction in interest can result in smaller monthly payments. However, it’s essential to note that refinancing a car loan may also lengthen the loan term, which could mean paying more interest overall, even with a lower rate. Borrowers should carefully weigh the potential benefits and drawbacks before deciding to refinance.

To calculate car loan payments with interest after refinancing, borrowers should take into account the new loan amount, interest rate, and loan term. Online calculators and spreadsheets can assist in this calculation. By plugging in these inputs, borrowers can see how the new loan will affect their monthly payments and total interest paid over the life of the loan.

It’s important to remember that simply refinancing a car loan doesn’t guarantee savings. Borrowers should shop around for the best terms and compare offers from various lenders. It’s also necessary to consider any potential fees or costs associated with refinancing. Ultimately, the decision to refinance a car loan should be based on a thorough assessment of the potential benefits and costs involved.

Understanding the impact of refinancing on car loan payments allows borrowers to make informed financial decisions. By taking advantage of lower interest rates, borrowers may be able to reduce their monthly payments and save money over time. However, it’s crucial to evaluate the terms and conditions of the new loan and consider any associated fees. With careful consideration and calculation, refinancing a car loan can be a wise financial move.

#### What is a car loan?

A car loan is a type of loan that is specifically designed for purchasing a vehicle. It allows individuals to borrow money from a lender to finance the purchase of a car.

#### How can I calculate my car loan payments?

You can calculate your car loan payments by using a car loan calculator or by following a specific formula. The formula includes the loan amount, interest rate, and loan term.

#### What is the interest rate on a car loan?

The interest rate on a car loan can vary depending on factors such as your credit score, the length of the loan term, and the current market conditions. It is usually expressed as an annual percentage rate (APR).

#### Is it possible to lower the interest rate on a car loan?

Yes, it is possible to lower the interest rate on a car loan. This can be done by improving your credit score, shopping around for the best loan terms, and making a larger down payment on the vehicle.

#### What happens if I miss a car loan payment?

If you miss a car loan payment, it can have negative consequences such as late fees, a negative impact on your credit score, and the risk of repossession. It’s important to communicate with your lender if you’re unable to make a payment and explore potential options.

#### How do I calculate my car loan payments with interest?

To calculate your car loan payments with interest, you can use a simple formula. The formula is: P = (r * A) / (1 – (1 + r)^-n), where P is the monthly payment, r is the monthly interest rate, A is the loan amount, and n is the total number of payments. Plug in the values and you will get the monthly payment amount.