# Auto Loan Calculator

## TIPS to Pay Less Interest

- Make a larger down payment (lower loan amount)
- Buy a less expensive car
- Get a lower interest rate
- Make extra payments (pay more than the normal monthly payment, assuming you are allowed to and that you don't get penalized for it)
- Pay off early (by making extra payments or a balloon payment)
- More frequent payments (small effect - just go with monthly by default)

## Description

This auto loan calculator determines the payment for a

**fixed-rate** loan. The default is to solve for the Payment. You can also enter the Payment and leave one of the other fields blank to solve for Loan Amount or Interest Rate. Enter an extra payment amount to see how much you might save by paying off your loan earlier.

The payment includes Principal+Interest. The calculator also estimates the **total interest** paid over the course of the loan. It does not take into account rounding, so the estimate may be off be a few dollars.

Solving for the **Rate** requires iteration, and there may be zero or more solutions. When the solver fails to converge, you'll get an error such as "Could not solve for Rate". The rate is rounded to the 6th decimal place.

**Loan Amount** - This is the amount that you have borrowed. It is NOT the price of the car. It is the amount financed, which often consists of the price of the auto + fees + sales tax - down payment.

**Annual Rate %** - This is the **annual interest rate**. This calculator assumes a fixed interest rate.

**Term** - Specifies how long until the loan is paid in full, assuming no extra payments. Auto loans are usually 1 to 6 years (12 to 72 months).

**Payment Frequency** - Used to specify the number of payments made per year (Monthly = 12 payments per year, Semi-Monthly = 24 per year, Bi-Weekly = 26 per year).

**Payment** - This is the amount (Principal + Interest) that you must pay each period. If you leave this field blank, the calculator will solve for the payment.

**Extra Payment** - This is the amount that you want to pay **in addition** to the normal payment, that will go towards paying the principal, allowing you to pay off the loan earlier and pay less interest overall.

Note: Values returned by this calculator may not be exact, due to rounding or truncation errors.

**Disclaimer:** Your financial situation is unique, and circumstances vary, so don't depend on this auto loan calculator to make your auto financing decisions. Please consult a professional. This calculator is for informational use only and does not constitute tax or financial advice.