Using an auto loan refinancing calculator, you can estimate the amount of interest you’ll pay over the duration of the loan. Using a calculator that provides an amortization schedule, you can determine how much interest you’ll pay each month. The principal (the amount you owe) and the interest are usually split equally between monthly payments. You will pay interest each month based on the current loan balance. Because of this, you pay more interest when your loan balance is higher at the beginning. When you repay the balance over time, the interest portion of your monthly payments will decrease. The Auto loan refinancing calculator can help you discover how much interest you owe on your car loan. If you’re up for the challenge, you can also do the math yourself.
Can car loans be financed at a good APR?
A car’s total cost can increase significantly by interest on a loan. A 30-month, 6% loan for $30,000 would cost $2,856 in interest. The same loan ($30,000 at 6%) would cost $5,797 in interest if paid back over 72 months.
Changes in your interest rate can have a significant effect on your monthly payments. With a 5% interest rate on a $30,000, 72-month loan, the total interest cost would be $4,787, which is almost $1,000 cheaper than the same loan at 6%.
How do I figure out my car payment?
Calculate how much interest you will pay during a loan using the auto loan refinancing calculator. You can use this calculator to try out different loan scenarios to find one that fits your budget and the amount of interest you’re comfortable paying.
Using the loan term (the number of months you have to pay back the loan), divide the total loan and interest amount by your monthly payment. If 4% interest is charged on a $30,000 loan over 60 months, the total interest would be $3,150. You would pay $552.50 per month ($30,000 + $3,150 x 60).
Repaying a loan in full takes longer than it should, which means you’ll pay more interest overall-and likely at a higher interest rate. When possible, make a down payment, and choose a loan term that allows you to make payments you can afford each month. Do keep in mind that buying a car entails additional costs beyond the loan. If you plan to drive for a long time, make sure you have enough money left over to pay for car insurance, gas, parking, maintenance, etc.