1. What is Payment Per 1000 Calculation?

The Payment Per 1000 calculation helps borrowers understand how much they would pay monthly for every Rs. 1000 borrowed, based on the interest rate and loan term. This standardized measure makes it easier to compare different loan options.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( r \) — Monthly interest rate (in decimal form)
• \( n \) — Loan term in months

Explanation: The formula calculates the fixed monthly payment required to pay off a loan of Rs. 1000 over 'n' months at a monthly interest rate 'r'.

3. Importance of Loan Payment Calculation

Details: Understanding your payment per Rs. 1000 helps in budgeting and comparing different loan offers. It provides a clear picture of how interest rates and loan terms affect your monthly payments.

4. Using the Calculator

Tips: Enter the monthly interest rate (e.g., 0.01 for 1%) and loan term in months. For annual rates, divide by 12 to get the monthly rate. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How do I convert annual rate to monthly?
A: Divide the annual percentage rate by 12 and convert to decimal (e.g., 12% annual = 1% monthly = 0.01).

Q2: Does this include insurance or other fees?
A: No, this calculates principal and interest only. Other costs may apply to actual loans.

Q3: Why calculate per 1000?
A: It provides a standard reference point to compare loans regardless of amount and helps estimate payments for different loan sizes.

Q4: What's a typical car loan rate in Nepal?
A: Rates vary by lender but typically range from 10-15% annually (0.0083-0.0125 monthly).

Q5: How accurate is this calculator?
A: It provides precise calculations based on the inputs, but actual loan terms may include additional factors.