Monthly Pay: $216.29
You will need to pay $216.29 every month for 5 years to payoff the debt.
The payment calculator is used to work out what is called a "loan amortization schedule". This is a fancy way of referring to the number and size of monthly payments you must make to pay off a loan with a fixed rate of interest – an auto loan or a mortgage are good examples.
These loans fall into two categories. One can either make a fixed amount of payment every month to pay off the loan, in which case the amount of time to pay it off may be longer, or one may fix the time in which one wishes to pay off the loan, and so monthly payments will be of unequal values.
Mortgages and auto loans tend to use the time limit approach to repayment. Fixed monthly payments are often used in repayment plans, for example, in working out a plan to repay credit card debt. By making a fixed monthly payment to your credit card, instead of a minimum payment, you can pay off the debt much more quickly, and save a great deal of money in interest payments!
The Payment Calculator offers a calculation for the payment amount or payment length for a one-time, fixed-interest loan. Use the "Fixed Term" tab to calculate the monthly payment of a fixed term loan. Use the "Fixed Payment" tab to calculate the time to pay off a loan using a fixed monthly payment. You will also see a graph for the amortization – it shows the accumulation of your payments over time and the decrease of your balance owed -- and an Amortization Schedule, which shows each monthly payment, the interest due, and the status of the principal and the balance for a given month.