Loan amortization liquidates an obligation over time.
The K-Factor calculator provides a monthly payment that will pay off a $1,000 loan over a designated time period i.e. 30 years.
For example, input 6.0% and 30 years and the calculator provides a $5.996 answer. you can simplify the number by rounding up or down. round $5.996 to $6.00, and a 30 year $100,000 loan @ 6% is $600/mo (p&i).
the k-factor pmt. will payoff a $1,000 loan over any amortization period (10,.15,20,25,30).
To calculate a P&I payment based on any loan amount, it is just a matter of dividing the loan amount by $1,000 and multiplying that number by the K-Factor to determine the monthly P&I payment.
Example:
$100,000 ÷$1,000 = 100 x $5.996 = $599.60 P&I (30 year loan)
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