How To Calculate Car Loan Payment
The easiest way to calculate your future car loan payments is to use the car payment calculator. With this and Kelley Blue Book’s Value Your Trade tool, you can more accurately estimate future payments when you know how much you’re getting for your older vehicle to put toward your new one. Use these tools and learn more with Acura of Milford.
Calculate Your Car Payment
In order to calculate your monthly car payments, you’ll need some information to plug into the payment calculator. Before using this, try out the value your trade tool. This will help you estimate how much your old vehicle is worth before you trade it in. After you get this price, the payment calculator tool will ask you for:
- Interest rate
- Vehicle price
- Loan term
- Down payment
- Trade in value
Calculate Your Auto Loan Interest
When calculating the loan interest on your first payment, all you need to do is divide your interest rate by the number of payments for the year. Next, multiply that by the balance of your loan. As for the rest of your payments, follow these steps:
- Subtract the interest you’ve calculated from your last payment.
- Deduct this total from your original principal to get a new balance.
In the end, human error and rounding can cause you to miss out on an exact calculation each time, but you’ll have a good basic idea of how much the interest is on your loan.
Finance at Acura of Milford
When you’re ready to commit to a new Acura model, and trade your old one in, reach out to our finance department to get the process started. You can even apply for financing online and get pre-approved before making the trip to Acura of Milford near New Haven. Contact us today if you have any questions.