An auto loan calculator is a car payment calculator with a trade-in, quickly measuring your monthly loan payment and displaying the detailed amortization of loans. With a printable car loan amortization schedule, the auto loan calculator can estimate the total cost, interest, repayment date, and required details of your loan
The auto loan calculator has built-in car trading options, sales tax, and other charges. If you don’t want to include this field of possibilities, just leave them as 0. You can print, share, or save an amortization schedule on your car loan.
When you take out a car loan to buy a car, your lender buys the car for you and allows you to pay it back over a set number of years. Primarily, the lender offers you the privilege of using their money and reimbursing them by paying interest in return. To learn how to calculate your loan terms with the Auto Loan Calculator app, read on.
What Are Auto Loans?
Many car loans use simple interest – a form of investment that calculates the interest charge only on the principal (i.e., the amount owed on loan). Simple interest is not compounded by curiosity, which generally saves money for the borrower.
However, simple interest doesn’t mean that you pay equal amounts of interest and principal each time you make a payment on your loan. Because your interest rate is based on how much you still owe on your loan each month, you will lower your interest rates by making unplanned payments that will reduce your loan balance.
You are participating in an accelerated car loan payout when you make unforeseen payments, which will minimize the overall amount of interest costs you incur during your loan. This can allow you to pay back your loan more quickly than initially planned.
Early payment of debt like a car loan is usually positive because you end up paying fewer interest charges. Nonetheless, before opting to make unscheduled payments, you should also understand your entire financial condition.
Auto Loan Calculator App
While you can’t measure your monthly car payment to the cent, a decent estimate can place you in the dealership’s driver’s seat and help you compare auto loan deals.
Here’s how to use the auto loan calculator and look at the different numbers that make up the payment for your car.
- Car price: Put in the price you think you are going to pay for the vehicle after negotiations in this area.
- Trade-in and down payment: enter the total amount of cash you’re adding to the new car, plus your current vehicle’s selling value.
- Interest rate: Use the drop-down menu at the top of the calculator to enter the rate you qualify for, or estimate the price based on your credit score.
- The number of months: Enter the duration of the loan or how long you expect to take to pay the loan.
- Results: You don’t have to look for a “calculate” button. Simply enter your numbers, and the results will be instantly updated.
While looking at the outcome of the monthly bill, be sure to face the dark, hard truth of how much interest you will pay. If that isn’t sobering enough, look at the total amount you’re going to spend on the car loan (excluding down payments).
By adjusting the amount of the trade-in or down payment, the interest rate, or loan term, you can see how it impacts your car payment and overall loan costs, and compare deals.
Short Term Auto Loans
Short term auto loans are loans provided to purchase a new or used vehicle that has payment periods of up to 36 months (three years) for 12 months (one year). These types of loans are designed to help a consumer quickly pay off a credit obligation to purchase a new or used car.
However, some can find the payment rates of shorter-term loans quite high or burdensome.
Short-term car loans usually offer lower interest rates than longer-term loans; however, this is not always the case. People with bad credit may need to use short-term loans to be approved by certain auto creditors.
Long Term Auto Loans
Long term auto loans are usually car loans that have payment terms up to about 84 months (seven years) rather than 36 months (three years). Longer-term auto loans are designed to enable customers to make smaller monthly payments on a car or truck.
While the specific monthly payment amounts are much lower with long-term auto loans, there is a dramatic increase in the amount of interest paid over the life of the loan. Try out the Auto Loan Calculator app now to discover these features. To download, click here.