Car Loan Calculator

Paying Too Much For Car Loans?

How does Car loan calculator or car payment calculator work? How much interest are you paying and what is your exact monthly payment? Find out the answers with this FREE auto loan calculator tool and much more!

Banks and car dealers use auto loan calculator to calculate monthly payment. It's a rather complicated calculation formula.

I include the calculation formula below just in case you want to know exactly how the heck is your monthly payments calculated. You will need to use a scientific calculator to perform the task.

To work out the payment, you need to know how much is:

• Loan amount or principle
• Your interest Rate
• Exact loan term

And here is the calculation formula:

• A = Monthly Payment
• P = Principal (loan amount)
• r = Interest rate per period
• n = total number of payments

Let's say you are buying 2006 Toyota Camry for the price of $15,000 from a dealer, your principle or loan amount will be $15,000. If you put $5,000 as down payment, your loan amount will be $10,000.

Assume your credit score sets you up for 7.9% interest rate or APR (Annual Percentage Rate) and 3 years (36 month) is the term to be paid off.

• P = $10,000
• r = 7.9% per year / 12 months = 0.658% per period
• n = 3 years x 12 months = 36 total month

By working with the formula we get monthly payment
A = $312.9 per month.

You can use the calculator below to get your Monthly Payment.

Please Note: This is an HTML form that allows the user to enter data, and allows JavaScript to display the results it computes back to the user. Use this tool as guide, the author of the site DO NOT warrant the accuracy of final calculations!

Well, I hope this handy free car loan calculator tool has been useful to you. You can also book mark this page (press Ctrl + D) for a reference page, should you need to calculate any kind of loan payment in the future.

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