Car Loan Calculator
Why use a Car Loan Calculator?
A car loan calculator can quickly help you gauge whether you can afford car finance or help you determine what to look for in a loan that meets your budget. By entering three key variables, loan amount, interest rate and loan term, you can see how much the monthly, fortnightly or weekly repayment will be and how much interest you are paying.
The variables used in our Car Loan Calculator
Loan amount – the amount you wish to borrow. You will also hear this referred to as the “principal”.
Interest rate – this is the rate of interest you pay to the lender. It is in effect the cost of the loan.
Loan term – this is the period over which you will be making repayments, measured in years. Commonly car loans are 2, 3 or 5 years, however some providers offer other terms that can suit your specific needs.
Extra repayments – this is an option to show you the effect of making regular extra repayments in addition to your minimum repayment.
Balloon payment – a balloon payment is the lump sum left at the end of the term.
The car loan calculator helps you ascertain the cost of car finance using a “what if” approach. By modifying the variables such as loan amount, interest rate, term, etc, you can answer the following questions:
- What is the impact if I make extra repayments?
- What happens if the interest rate goes up?
- How much will I have to pay if I choose a shorter or longer loan term?
- What is the effect of more frequent payments?
- How much can I afford to spend on a car and still stick to my monthly budget?
Why not use our car loan calculator to design a car loan with a rate and a term that suits your budget. Then, get the team at 123 Carz to connect you with the best lender that will meet these requirements.