Also calculates total payments and total interest paid on your auto loan. Create and print out your loan amortization schedule. To include car price, down payment and trade-in value use this Car Loan Payment Calculator. You can also create a table of payments if you want to investigate various loan options.
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Different auto loans may have different interest compounding periods. The more often interest compounds, the higher the amount of interest you pay on the loan. To calculate compounded interest on an auto loan, you need to know how much you owe, how often interest compounds and the annual interest rate.
If you are interested in learning how to calculate auto loan interest payments, you will be relieved to know that the process is quite simple. Understanding how lenders calculate auto loan interest payments on new car loans is important when you begin shopping around for a new car.
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When applying for a car loan, you first need to determine if the monthly payment fits into your budget. A big part of financing the purchase of a new car includes the interest you pay the lender for letting you borrow the money in the first place. You can easily calculate the total interest you need to pay by using a simple formula.
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Use the excel rate function to calculate the annual interest rate. This will give you an idea how much interest you are paying if you change the monthly amount or number of payment periods.