|Total Cost of the Loan|
|Total Cost of the Loan|
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.
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.
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.
Our calculator can be helpful for you in many ways.
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.