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Auto Loan Calculator with amortization and trade-in value
Car Loan Calculator
Having an own car is the dream of most individuals. Everyone wants to go on a long drive with their loved ones. Moreover, having a car is a status symbol nowadays.
However, it is quite difficult for a person to save a good amount of money to buy a car. But saving is not the only option to afford it.
Currently, most people prefer to embark on a car loan to buy their needed car. Furthermore, no matter whether you are salaried or self-employed, you can quickly get a car loan.
Obtaining a car loan is generally not difficult, but calculating the monthly installments on different interest rates is important to make sure you can afford such a loan. An auto loan calculator with amortization is designed specifically to do so.
Calculate Your Car Loan installments
There are various lending companies that provide car loans. They have different interest rates, which means your monthly installments will also differ by hundreds of dollars, significantly affecting the overall cost of your vehicle.
Monthly payments are of course impacted by the interest rate charged, the loan duration, and potential fees.
Our auto loan calculator with amortization provides accurate results. You just need to enter the necessary information, and then it will provide you results within a second so you can make an informed decision.
How to use this calculator
Besides knowing the purchase price of your car, most of the times you will have to make a down payment for , which is what you pay upfront and thus won’t be affected by interest. Depending on the lender or dealership of choice, the down payment is estimated either as a percentage of the car’s value or a fixed amount.
Next comes the interest rate: you may already know it, or just assuming a percentage you are comfortable with, and see how it impacts on your future payments. If your lender discloses an APR (annual percentage rate) range, you can consider it as the normal interest, because the bulk of fees are set and estimated apart.
The loan terms can range usually from 1 to 7 years: as for the interest rate, you may already know your assigned term, or just making an assumption based on your desired schedule.
The sales tax is basically a percentage amount of the car’s selling value which is charged for the transaction, and is determined from a state jurisdiction based on the market conditions for that state. You can check the sales tax for your location here.
Title insurance and loan fees are often bound together, and you will know them when you turn to a dealer or lender. They constitute an upfront cost that adds up several hundreds dollar to the cost of the loan, but in some cases they can be enrolled in it (however, you’ll get additional interest on them). Again, they can be presented to buyers either as percentage of the vehicle’s price or, more commonly, as flat dollar amounts.
About the trade-in value: if you want to buy your new car by giving away your old one, you can include the trade-in value in the overall cost of the loan. This option is convenient mostly for saving time and the effort required to sell the car directly, but you’ll have a loss compared to selling because trading-in involves a significant depreciation of the asset.
Hit “Calculate” and you’ll have everything taken into account. Have a careful look into the amortization table, to see the monthly installments fit into a long-term schedule. Mind how your payments stay the same (if you were assigned a fixed rate, which is the only one we are dealing with), while the portions of principal and interest change.
Note: if you change any parameter after generating a report, you’ll have to hit “Calculate” again to see the new results, aka it won’t do automatically.
Key Features of the Auto Loan Calculator with Amortization
- Compares two auto loans: it is the feature that is missing in most of the calculators available online. If you are deciding between two offers, by entering their numbers you will know which one is the most convenient. This allows you to save or get better management of repayments: just hit the “+Compare” button and a second panel will show.
- Allows you to consider a down payment amount: this option can be available from some lenders as a requirement in itself, in order to let you qualify for the loan or as a compromise to obtain a lower rate.
- Takes account of the sales tax: this can be a substantial amount to be factored into the cost of your loan. Unless living in a State that doesn’t require it, you will need to pay this tax whenever you purchase a vehicle.
- Considers fees: these make the difference of hundreds or even a few thousand dollars in your loan total cost, so you have the chance to put them into the computation.
- If you want to leverage the trade-in valueof your vehicle to finance your new car purchase, some lenders will allow doing this. While this is not so convenient because it takes out much from the price of your old car, it will make you save on your loan. See how the monthly payments will be affected.
Why You Should Use a Car Loan Calculator
Our calculator can be helpful for you in many ways.
- Includes all of a car loan parameters: accuracy is the main and essential feature. You want to make sure to consider every cost involved in your loan.
- Aids you in budgeting: the purpose is of course that you will get an idea of how much money you need to repay the loan. Once you know that, you can easily plan your other monthly expenses while ensuring you can actually afford the car. The amortization graph is greatly useful in this regard.
- Easy to understand: the calculator UI is user-friendly and easy to control.
- Playing with interest rates: your monthly payments are essentially affected by the interest rate. You can either assume a comfortable interest rate to know the monthly payments accordingly, or you can enter the rates offered from lenders to find out if they are actually affordable.
If you are planning to get a car loan, by all means use a complete auto loan calculator with amortization like this tool. It is very useful for evaluating offers you are already receiving, or see our top-recommended auto loan servicers (based on thousands of reviews), so that you will make the best possible choice for buying your car.