1. What is the Personal Loan Payment Formula?

The personal loan payment formula calculates the fixed monthly payment required to repay a loan over a specified term. This is the standard formula used by banks including ING for personal loan calculations.

2. How Does the Calculator Work?

The calculator uses the PMT formula:

Where:

• \( PMT \) — Monthly payment amount
• \( P \) — Principal loan amount (EUR)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (loan term in months)

Explanation: The formula accounts for both principal repayment and interest charges, calculating a fixed payment that fully amortizes the loan over the specified term.

3. Importance of Loan Payment Calculation

Details: Understanding your monthly payment helps with budgeting and ensures you can comfortably afford the loan before committing to it.

4. Using the Calculator

Tips: Enter the loan amount in EUR, annual interest rate in percentage, and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this include any ING loan fees?
A: This calculates the principal and interest payment only. ING may charge additional fees not included in this calculation.

Q2: How does the interest rate affect payments?
A: Higher rates increase monthly payments. A 1% rate increase can significantly impact your payment over long terms.

Q3: What's better - shorter or longer loan term?
A: Shorter terms mean higher payments but less total interest. Longer terms reduce monthly payments but increase total interest paid.

Q4: Can I pay off my ING loan early?
A: Most ING loans allow early repayment, but check for any prepayment penalties that might apply.

Q5: How accurate is this calculator?
A: This provides a close estimate, but actual ING loan terms may vary based on your credit profile and current offers.