10 Year Fixed Loan Calculator

Introduction

Calculating the monthly payment for a 10 Year Fixed Loan is crucial when planning for long-term financial commitments. In this article, we’ll provide a user-friendly HTML and JS calculator for this purpose. This calculator employs a precise formula to ensure accurate results.

How to Use

Simply input the loan amount, interest rate, and loan term, then click the “Calculate” button to get the monthly payment for a 10 Year Fixed Loan.

Formula

The formula used for calculating the monthly payment (PMT) is:

$PMT = ( 1 + r ) ^{n} - 1 P \times r \times ( 1 + r ) ^{n}$

where:

$P$ is the loan amount,
$r$ is the monthly interest rate (annual rate divided by 12), and
$n$ is the total number of payments (loan term in years multiplied by 12).

Example

Let’s consider a loan amount of $100,000, an annual interest rate of 5%, and a 10-year term.

$r = 12 0.05$

$n = 10 \times 12 = 120$

$PMT = ( 1 + 12 0.05 ) ^{120} - 1 100000 \times ( 12 0.05 ) \times ( 1 + 12 0.05 ) ^{120}$

FAQs

Q: Why is the monthly interest rate calculated as the annual rate divided by 12?

A: The monthly interest rate is derived by dividing the annual interest rate by 12 to convert it into a monthly rate.

Q: Can this calculator be used for other loan types?

A: No, this calculator is specifically designed for 10 Year Fixed Loans.

Q: Is the result inclusive of taxes and insurance?

A: No, the result only represents the principal and interest components of the monthly payment.

Conclusion

This HTML and JS calculator provides a convenient way to determine the monthly payment for a 10 Year Fixed Loan. By following the simple steps outlined above, users can accurately plan their financial commitments.