Chancellors Formula Calculator

Chancellors Formula Calculator calculator can be used for calculating monthly loan payments.

Input Parameters

Calculation Results

Calculation Formula

M = P[r(1+r)^n]/[(1+r)^n-1]

Where:
M = Monthly Payment
P = Principal Amount
r = Monthly Interest Rate (annual rate / 12)
n = Number of Payments (loan term in months)

Monthly Payment

$0.00

Chancellors Formula Calculator Calculator Usage Guide

Learn how to use the Chancellors Formula Calculator calculator and its working principles

How to Use the Calculator

  1. Enter the principal amount of the loan.
  2. Input the annual interest rate for the loan.
  3. Specify the loan term in months.
  4. Click the "Calculate" button to compute the monthly payment.
  5. The result will be displayed in the "Monthly Payment" section.

Understanding the Formula

The formula used for calculating the monthly payment is based on the annuity formula:

M = P[r(1+r)^n]/[(1+r)^n-1]

Where:

  • M = Monthly Payment
  • P = Principal Amount
  • r = Monthly Interest Rate (annual rate / 12)
  • n = Number of Payments (loan term in months)