Use the above formula to determine the total amount you will pay for a loan. Example: If we borrow $100,000 for 10 years at 8 per cent annual percentage rate, what is the total cost of the loan (principal plus interest) ? 1) The rate (r) would be 8 divided by 1,200 which equals 2) The number of payments (n) would beSelect the cell you will place the calculated result in, type the formula =CUMIPMT (B2/12,B3 12,B1,B4,B5,1), and press the Enter key. See screenshot: Note: In the formula, B2 is the annual loan interest rate, B2/12 will get the monthly rate; B3 is the years of the loan, B3 12 will get the total number of periods (months) during the loan; B1 is the Step 4: Determine the second part of the formula. For the next part of the formula, or ( (1+r)n - 1), add 1 to the APR per month and then get the exponent by pressing the exponent button, or x^y, and the number of months of the loan term. Subtract 1 from this total to get a digital sum. Step 5: Determine total …Here is the formula the lender uses to calculate your monthly payment: loan payment = loan balance x (annual interest rate/12) In this case, your monthly interest-only payment for the loan above would be $ Knowing these calculations can also help you decide which loan type would be best based on the monthly payment loan calculate total amountTOTAL LOAN COST FORMULA and CALCULATORHow to Calculate Total Interest Paid on a Car Loan: 15 StepsHow to calculate loan payments in 3 easy steps

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