Auto Loan Calculator
Auto Loan Calculator (Detailed)
Auto Loan Calculator
At CalculatorHQ.net, we offer two types of auto loan calculators: a simple auto loan calculator and a more comprehensive one. With our calculators, you can easily estimate your monthly auto loan payments and understand the overall cost of owning a car, making your car purchase decision more informed and budget-friendly.
Simple Auto Loan Calculator
Our Simple Auto Loan Calculator enables you to quickly calculate your monthly auto loan payments. All you need to do is input the loan amount, loan term, and the interest rate.
Formula:The formula used in this calculator is:
M = P [ r(1+r)^n ] / [ (1+r)^n – 1]
Where:
- M is your monthly payment.
- P is the principal loan amount.
- r is the monthly interest rate (annual interest rate divided by 12).
- n is the number of payments (loan term in months).
Example:
Suppose you're taking a $20,000 auto loan with a 5-year term (60 months) at an annual interest rate of 6%. The monthly payment would be:
M = 20000 [ 0.005(1+0.005)^60 ] / [ (1+0.005)^60 – 1] = $386.66
So, your monthly auto loan payment will be approximately $386.66.
Detailed Auto Loan Calculator
Our Detailed Auto Loan Calculator provides a more comprehensive view of your auto loan by factoring in various expenses related to your auto purchase, such as down payment, trade-in value, sales tax, and other fees. By using this calculator, you can calculate the actual loan amount that needs to be financed.
Formula:The formula used in this calculator is:
A = P - D - C + T + F
Where:
- A is the amount to be financed.
- P is the auto price.
- D is the down payment.
- C is the cash incentives.
- T is the trade-in value.
- F is the other fees (including sales tax).
Example:
Suppose you're buying a car for $25,000. You've a down payment of $5,000, cash incentives of $1,000, and a trade-in value of $2,000. Sales tax is $1,500, and other fees total $500. The amount to be financed would be:
A = 25000 - 5000 - 1000 + 2000 + 2000 = $21,500
So, the actual loan amount that you'll be financing will be $21,500.