Question 1

How do I calculate my car loan monthly payment?

Accepted Answer

Enter the car price, down payment (percentage or fixed amount), interest rate (APR), and loan term (years or months). The calculator automatically calculates your monthly payment using the standard amortization formula. Trade-in value and fees are also factored in.

Question 2

Should I use percentage or fixed amount for down payment?

Accepted Answer

Use percentage if you know what percentage of the car price you want to put down (e.g., 20%). Use fixed amount if you have a specific dollar amount (e.g., $5,000). Both methods give the same result - choose whichever is easier for your situation.

Question 3

How does trade-in value affect my loan?

Accepted Answer

Trade-in value reduces your loan amount, which lowers your monthly payment and total interest. For example, a $30,000 car with a $5,000 trade-in means you only finance $25,000. Enter your trade-in value to see its impact on your loan.

Question 4

What is an amortization schedule?

Accepted Answer

The amortization schedule shows month-by-month how your loan payments are split between principal (the amount borrowed) and interest (the cost of borrowing). Early payments are mostly interest; later payments are mostly principal. This helps you understand your loan structure.

Question 5

How can I reduce my monthly payment?

Accepted Answer

Reduce monthly payments by: 1) Increasing down payment, 2) Extending loan term, 3) Getting a lower interest rate, 4) Including trade-in value, or 5) A combination. Use the calculator to see how each change affects your payment.

Car Loan Calculator - Auto Loan Payment, Interest & Amortization Schedule

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