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Car Loan Payment Calculator is a user-friendly tool that displays the monthly and actual loan amount in a fraction of seconds. The only thing you have to do is enter car price, sales tax, down payment, trade-in value, loan tenure and interest rate details to get the EMI and loan amount as result easily.
Car Loan Payment Calculator with Trade-in Value: Determine the monthly car loan payment value by using the free Car Loan Calculator. Continue reading to know about what is the car loan payment formula, what are the terms included in the car loan system. Check the step by step process to find the car loan monthly payment and total loan amount with real-time examples.
Get the detailed steps to calculate the monthly car loan payment amount with down payment and trade-in value from the following section.
The parameters of the car loan payment calculator are listed here with an explanation.
The monthly payment present value equation for PMT is given here:
PMT = PV x i x [(1+i)n/((1+i)n-1)]
PV is the actual loan amount
i is the rate of interest
n is the loan term
David has bought a car with $25,000 on loan and he paid $5000 as down payment. The sales tax is 7%, trade-in value is $4500, loan term is 60 months and interest rate is 4.5%. Find the monthly payment amount?
Car price = $25,000
Sales tax = 7%
Down payment = $5000
Trade-in value = $4500
Loan term n = 60 months
Interest rate i = 4.5%
The amount you need to take as loan = ($25,000 - $5,000) - $45,000 = $15,500
The loan amount = $15,500
The monthly payment formula is PMT = PV x i x [(1+i)n/((1+i)n-1)]
PMT = 15,500 x 0.375 x [(1+0.375)60/((1+0.375)60-1)]
Actual loan amount = $17,250
Arithmetic Calculators has got concepts like finance, trigonometry, arithmetic, math and many more along with their relevant calculators all one under one roof.
1. What is the formula for calculating a car loan payment?
The formula to calculate a car loan payment is Monthly Payment = PV x i x [(1+i)n/((1+i)n-1)]
2. How does the loan term affect the interest rate amount?
You need to realise that your interest rate is not the only factor that determines the total amount of interest to be paid on your loan. Your car loan tenure plays an important role in determining the interest amount you repay the lender. As a general rule, for the same interest rate, the longer duration, the higher are the interest repayments.
3. Is it cheaper to pay off a car loan early?
If you make a monthly payment on the car loan, you are paying both principal and interest. Based on the terms of the loan contract, you might pay less interest if you pay off your principal early.
4. How is the down payment on a car calculated?
Multiply the total amount by the percentage required by the lender minus the value of any trade-in to get the down payment amount.