**Introduction**

Calculating loan repayments is an essential task for anyone considering a long-term financial commitment. To simplify this process, a 5-Year Loan Repayment Calculator can be a valuable tool. In this article, we’ll provide you with a functional HTML and JavaScript code for a calculator that accurately computes loan repayments based on the most precise formula.

**How to Use**

- Enter the loan amount in the designated input field.
- Input the annual interest rate.
- Specify the loan term in years.
- Click the “Calculate” button to obtain the monthly repayment amount.

**Formula**

The formula for calculating monthly loan repayments is given by:

$M=P×(+r)n−r(+r)n $

Where:

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

**Example**

Let’s say you borrow $50,000 with an annual interest rate of 5% for a 5-year term. Plugging in these values into the formula, the monthly repayment would be calculated as follows:

$M=50000×(+)5∗12−(+)5∗12 ≈943.34$

**FAQs**

**Q1: Is this calculator suitable for any type of loan?**

**A1:** While the formula used here is generally applicable, it’s primarily designed for fixed-rate loans.

**Q2: How accurate is the formula used in the calculator?**

**A2:** The formula is precise and widely accepted for calculating fixed-rate loan repayments. However, it doesn’t account for additional factors like taxes or insurance.

**Q3: Can I use this calculator for variable interest rate loans?**

**A3:** This calculator is optimized for fixed-rate loans. For variable rates, the formula and code would need adjustments.

**Conclusion**

In conclusion, a 5-Year Loan Repayment Calculator provides a quick and accurate way to estimate monthly loan repayments. By understanding the inputs and the formula behind it, users can make informed financial decisions.