Car Loan Calculator
Steps to Use the Calculator

Loan Amount ($):
 Enter the total loan amount in the provided input field. This is the principal amount that you are borrowing.

Loan Term:
 Enter the loan term as a number, which can be in either months or years.
 Select the appropriate unit for the loan term (months or years) using the dropdown menu.

Interest Rate (%):
 Enter the annual interest rate for the loan in percentage. This should be the nominal annual interest rate provided by the lender.

Calculate:
 Click the “Calculate” button to compute the monthly payment, total payment, and total interest.

Review the Results:
 The results will be displayed below the calculation button, showing:
 Monthly Payment: The fixed payment amount you need to pay every month.
 Total Payment: The total amount paid over the life of the loan (including principal and interest).
 Total Interest Paid: The total interest cost over the life of the loan.
 The results will be displayed below the calculation button, showing:
Example
 Loan Amount: $20,000
 Loan Term: 5 years (60 months)
 Interest Rate: 3.5%
After entering these values and clicking “Calculate,” the calculator might show:
 Monthly Payment: $363.11
 Total Payment: $21,786.60
 Total Interest Paid: $1,786.60
This indicates that the monthly payment is $363.11, the total amount paid over the 5 years will be $21,786.60, and the total interest paid on the loan will be $1,786.60.
Formulas Used

Monthly Payment:
$$M=\frac{P\times r}{1(1+r{)}^{n}}$$
Where:
 $M$
 $P$
 $r$
 $n$

Total Payment:
$$\text{TotalPayment}=M\times n$$

Total Interest Paid:
$$\text{TotalInterestPaid}=\text{TotalPayment}P$$
Advertisements