Managing loans and debt properly is essential for maintaining your financial health. Learn how to calculate your payments and plan an effective repayment strategy.
How to Calculate Monthly Payments
Monthly payments depend on three main factors:
- Loan Amount: The original borrowed amount
- Annual Interest Rate: Cost of borrowing
- Loan Term: Number of repayment months
Practical Example
Loan: 100,000 SAR
Interest: 5% annually
Term: 5 years (60 months)
Monthly Payment: ≈ 1,887 SAR
Pro Tip
Use our Loan Calculator to accurately calculate your monthly payment before borrowing.