Loan Calculator
Amortized Loan: Paying Back a Fixed Amount Periodically
Results:
Payment Every Month: $1,110.21
Total of 120 Payments: $133,224.60
Total Interest: $33,224.60
Principal: 75%
Interest: 25%
Deferred Payment Loan: Paying Back a Lump Sum Due at Maturity
Results:
Amount Due at Loan Maturity: $179,084.77
Total Interest: $79,084.77
Principal: 56%
Interest: 44%
Bond: Paying Back a Predetermined Amount Due at Loan Maturity
Results:
Amount Received When the Loan Starts: $55,839.48
Total Interest: $44,160.52
Principal: 56%
Interest: 44%
Overview
The Auto Loan Calculator is a practical tool designed to help you estimate your monthly car loan payments and understand the total cost of financing a vehicle. It provides a clear breakdown of principal and interest payments and allows you to explore different loan scenarios to find the most suitable option for your budget.
Understanding Auto Loans
An auto loan is a type of personal loan specifically used to purchase a vehicle. The lender provides the funds needed to buy the car, and you agree to repay the loan over a specified period with added interest. Key factors affecting your monthly payments include the loan amount, interest rate, and loan term.
Key Components of an Auto Loan
The Auto Loan Calculator estimates the following components:
Interest Rate: The percentage charged by the lender for borrowing the money. Auto loans can have either fixed or variable interest rates.
Loan Term: The duration over which you will repay the loan. Common terms for auto loans range from 36 to 72 months.
Monthly Payment: The amount you will pay each month, which includes both the principal and interest.
Additional Features
Trade-In Value: Input the value of your current vehicle if you’re trading it in to further reduce your loan amount.
Extra Payments: Calculate the impact of making additional payments or paying off the loan early, which can save on interest and shorten the loan term.
Amortization Schedule: View a detailed breakdown of each payment, showing how much is applied to interest versus the principal.
Benefits of Using the Auto Loan Calculator
Loan Comparison: Compare different loan offers by adjusting loan amounts, interest rates, and terms to find the best financing option.
Informed Decisions: Make well-informed decisions about your car purchase and financing by understanding the financial impact of different loan scenarios.