Use this tractor loan calculator to quickly determine your monthly payments and total cost of the loan for your farming equipment purchase.
Tractor Loan Calculator
This tractor loan calculator helps you determine the monthly payments on a loan. Simply enter the loan amount, interest rate, and the term of the loan in years.
How To Use
To calculate your monthly tractor loan payment:
- Enter the Loan Amount you’re seeking to find out the future payments.
- Input the Annual Interest Rate (percentage) your lender is charging.
- Type the Loan Term in years for the period over which you intend to pay back the loan.
- Click the “Calculate” button to get your monthly payment.
How It Calculates
The calculator uses the standard formula to determine a fixed monthly payment:
PMT = [P * r * (1+r)^n] / [(1+r)^n – 1]- PMT is the monthly payment
- P is the principal amount (Loan Amount)
- r is the monthly interest rate (Annual Interest Rate / 12 / 100)
- n is the number of payments (Loan Term * 12)
Limitations
Our tractor loan calculator assumes:
- All months are equally long. However, in reality, some months might have a few more days than others resulting in slightly higher or lower interest charges for those months.
- That the interest rate won’t change throughout the loan term. If you have a variable interest rate, your payment can fluctuate.
- A fixed interest payment, meaning that the interest charges will not become progressively smaller as you pay off the loan.
- No fees or penalties are considered in the calculation of the monthly payment.