Car Loan Amortization Calculator
Break down monthly payments and interest for your new or used car financing scenario.
Additional Information and Definitions
Car Price
Enter the full price of the car before any down payment. This is typically the purchase price.
Down Payment
How much cash are you putting down upfront? This amount lowers the principal to finance.
Loan Term (months)
The total number of months over which you will repay the loan.
Annual Interest Rate (%)
The yearly interest rate for your car loan. This will be converted to a monthly rate.
Plan Your Auto Financing
Figure out how much you'll pay every month and in total interest.
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Key Car Loan Terms
Understand the common phrases used in car financing:
Principal:
The amount borrowed after subtracting any down payment, forming the base of your loan.
APR:
Annual Percentage Rate. It reflects the yearly interest, including certain fees or charges.
Term:
The length of time (in months) you have to fully repay the loan.
Monthly Rate:
The monthly interest rate, found by dividing the annual interest rate by 12.
Amortization:
The process by which monthly payments are divided between principal repayment and interest.
Down Payment:
An upfront portion of the car price that immediately reduces the principal.
5 Fascinating Nuggets About Car Loans
Car loans might appear simple, but there's a world of interesting tidbits behind them. Read on to discover five fun facts:
1.They Can Reshape Your Budgeting Mindset
A car loan extends your fiscal responsibilities. People often become more conscious of routine expenses when they commit to monthly payments.
2.Longer Terms, More Interest
As tempting as a long-term loan can be for lower payments, it often leads to paying more in total interest over time. Balance your monthly budget with overall savings.
3.Negotiation Powers
Negotiating the loan interest rate, even by half a percent, can save thousands over the full term. Smart shoppers explore multiple lenders.
4.Early Payoff Perks
Many lenders allow early payments with minimal penalty. Paying off your car sooner can free up your monthly finances and reduce total interest paid.
5.Vehicles Depreciate Fast
Your newly financed car loses value quickly. Understanding depreciation helps you decide on the right down payment and loan length.