Loans & Debt
Total interest
Everything repaid beyond the balance is interest.
The Formula
Interest = payment x n - P
Everything repaid beyond the balance is interest.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| Pmt | Monthly payment | currency | The fixed instalment. |
What Each Symbol Means
Pmtcurrency
Monthly payment
The fixed instalment.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate student loan payments page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Student Loan Payments, filed under Finance. Every number the guide produces comes from substituting into this one line.