Calculate car loan calculator online. How to calculate a car loan yourself: interest rate, payments, interest
Reading time: 7 minutes
Applying for a loan is one of the popular options for becoming a motor vehicle owner. Indeed, with its help, you can purchase an iron horse much faster than regularly saving money. But there is no need to rush to the bank. It is recommended that you first analyze your financial opportunities so that a hasty decision does not lead to much trouble in the future. How to calculate a car loan and what is needed for this will be discussed in this article.
Car loan concept
You can buy a car on credit in almost every bank. Since this is one of the most common lending programs, which, moreover, is of great interest among individuals... Car loan is a targeted banking product. That is, the money is transferred by bank transfer to the account of the vehicle seller. The use of funds for other purposes is fraught with penalties up to the requirement early repayment credit.
Almost every car loan provides for the following parameters:
- The down payment is on average from 10-15%, but it can be either zero or more than the indicated values. It all depends on the type of car, its age, manufacturer, and other conditions.
- The term of the agreement is from 1 to 7 years. For new cars of foreign production, loans are provided for a longer period than for used ones.
- Interest rate - here the variations in values are very diverse. On average, the payment for car loans ranges from 7 to 12% per annum.
- Collateral - usually a car is pledged, which is purchased for credit money.
- Insurance - hull insurance is almost always required, compulsory OSAGO, sometimes personal insurance.
What information is needed for the calculation
In order to choose the optimal credit conditions that will not create problems during debt servicing, it is recommended to calculate a car loan yourself. For an approximate calculation potential borrower you need to know all the parameters of the credit program, namely:
- the cost of the car;
- loan terms;
- interest rate;
In addition to the above conditions, insurance also has a significant impact on the size of the loan. Very often banks include it in the loan amount, which accordingly increases the size of the monthly payment.
Calculation of a loan with a down payment
Many potential customers are interested in the question of how to correctly calculate a car loan, if the conditions are present an initial fee... This parameter directly affects the amount of financing - the larger it is, the smaller the loan size. The required amount of the down payment is indicated as a percentage of the value of the car. That is, if the program specifies 15%, and the cost of the car is 700,000 rubles, then the amount of the advance will be 105,000 rubles, 595,000 rubles - a loan. Depending on the last numerical value, the monthly payment for a car loan.
Loan calculation without advance payment
To make buying a car more affordable, sellers Vehicle together with banks, they offer to buy a car without a down payment. How is a car loan calculated in this case. Everything is extremely simple. This option provides that the initial payment is zero, and the loan amount is the total cost of the vehicle. That is, only the price of the car affects the amount of the monthly payment.
What is the interest rate on the loan
The loan price for the borrower is determined by the level of the interest rate. Therefore, car dealerships, together with banks, often hold various promotions, under the terms of which you can take a car on credit in a car dealership under a very low interest... And also a profitable offer is the purchase of a car under the state support program. With its help, a car loan can be issued at a rate of 6.4% per annum.
It should be noted that many lenders set fines for non-fulfillment of certain conditions - for example, due to the absence of a personal insurance agreement or CASCO, the loan payment increases by 1-2 percentage points, or even more.
But not only the loan fee includes accrued interest, banks in order to increase the profitability of the transaction can set commissions - both monthly and one-time, for example, for servicing a car loan.
The formula for calculating the monthly payment
The following factors indicate the influence of the monthly payment:
- credit amount;
- interest rate;
- term of the contract;
- repayment schedule - annuity or classic.
The formula for calculating a car loan for a standard schedule is simpler than for an annuity one. Here you just need to divide the body of the loan by the number of months during which the car loan will be repaid. The maximum percentages are calculated using the following formula:
Loan amount *% / 12.
To get the final result, you need to add to the monthly payment for the body maximum size accrued interest.
The following formula is used to calculate the payment for the annuity schedule:
S = Kr * k, where
Kr - loan amount,
k is the annuity coefficient.
The last value is calculated using a special formula:
k =% * (1 +%) N / ((1 +%) N - 1), where
% - monthly interest rate. To get it, you need to divide the annual by 12 (the number of months in a year),
N - the number of months of the loan.
An example of calculating a car loan
For example, a client wants to buy a car worth 800 thousand rubles. The bank offers him to issue on the following conditions:
- initial payment - 15%;
- interest rate - 12.5%;
- loan term - 7 years.
First you need to determine the loan amount. To do this, you need to calculate the size mandatory contribution: 800,000 * 15% = 120 thousand rubles. In total, the bank can finance the client for 680,000 rubles.
If the contract provides for a differentiated schedule, then the maximum monthly payment will be as follows:
- loan body: 680,000 / 84 = 8,095.24 rubles;
- interest: 680,000 * 12.5% / 12 = 7083.33 rubles.
As a result, the monthly payment will be 15,178.57 rubles.
Now, on the same terms, we will calculate the monthly payment for the annuity schedule. First, you need to find the monthly interest rate: 0.125 / 12 = 0.010417.
The resulting value is multiplied by the loan amount and we get 12186.44 rubles. This is the size of the monthly payment for the annuity repayment scheme.
As you can see, the monthly payment for the annuity schedule is less than for the classic one. But it will be like this until the end of the contract, but according to the classic, the payment decreases every month.
How to calculate your car loan payment online
Today, it is not necessary to calculate the payment for a car loan on your own in Excel or on a calculator. Absolutely all banks have placed online calculators on their websites so that everyone can independently calculate the monthly payment for a car loan, taking into account the parameters of the credit program. To make an online calculation of a car loan at a bank, you only need to enter the following values in the appropriate fields:
- the cost of the car;
- loan terms;
- the amount of the initial payment.
In most cases, you do not need to specify the interest rate, it is automatically adjusted taking into account the terms of the loan. Its size can be influenced by such factors:
- availability of personal insurance;
- customer category;
- condition of the car.
How to find out the amount of a monthly payment
It is not difficult to calculate the monthly payment for a car loan using an online calculator, you just need to fill in the appropriate fields. Given that most credit programs provides for an annuity repayment schedule, the result that appears on the screen after the calculation will correspond to the monthly payment until the end of the contract.
It will be possible to calculate the payment more accurately only at the bank. The loan manager, when drawing up a loan schedule, will take into account all the nuances of the transaction, such as the client's category, the amount of the down payment, the availability of information on income, the loan term, and will make the correct calculation. If the obtained result suits the potential client, his income is quite enough to service the debt, you can safely apply for a car loan. It is advisable that the monthly expenses on the loan do not exceed half of the monthly income.
How to find out the final cost of a loan
To determine which loan is better for a potential borrower, it is not always worth paying attention to the size of the interest rate. Sometimes a small loan payment is offset by large commissions and additional costs. For example, CASCO in one bank will be more expensive than in another, or the client will be obliged to take out more personal insurance, which increases costs.
Therefore, in order to calculate the cost of a car loan, you first need to find out the amount of interest accrued for the entire period of the contract. This information can be obtained from the bank printout. Then you need to find out about insurance rates: under the CASCO policy, personal insurance... It is also important to consider that life and car insurance will have to be insured annually until the end of the contract. These costs also need to be added to the accrued interest.
Also, the borrower will incur notary fees and bank fees that may accompany the transaction.
After all the costs have been taken into account, by the final amount it will be possible to determine where it is best to apply for a car loan. It is worth considering that a potential borrower can obtain all the necessary information only at a bank branch. It is very difficult to independently calculate a loan, taking into account all costs, and an online calculator will not help in this matter.
What to do to reduce loan costs
The amount of overpayment on a loan is mainly influenced by:
- credit amount;
- interest rate;
- term of the contract.
The larger they are, the greater the overpayment. Therefore, in order to reduce the cost of a car loan, all these parameters must be reduced. For example, when applying for a loan, it is advisable to pay a large amount of the initial payment, take a loan for a shorter period. The main thing is not to overdo it, so that the size of the monthly payment is comfortable for repayment.
You can also reduce the cost of the loan with the help of private and full early repayment. In the presence of free money the borrower is advised to increase the monthly payment. Thus, he quickly reduces the balance on the body of the loan. As a result, the amount of accrued interest is reduced and the term for using the loan is reduced. And with full early repayment, interest is charged only for the actual period of using the money.
In addition to interest, in case of early repayment, the borrower saves on insurance. After all, if he repays the loan earlier, he will no longer have to conclude insurance contracts.
Let's summarize
- the cost of the car;
- maximum loan term;
- interest rate;
- the amount of the initial payment.
Using this data, you can find out the amount of the monthly payment in order to draw a conclusion how significantly the availability of a loan will affect family budget... The preliminary calculation of the payment can be done independently on the bank's website using an online calculator. But the final one is better done in a bank department - there the credit manager will build a payment schedule taking into account all the nuances of the transaction.
Before making the final choice in favor of one or another lender, a potential borrower needs to calculate not only the overpayment of the loan for the entire term of the agreement, but also take into account such additional expenses, how:
- annual insurance payments;
- bank commissions;
- payment for notary services.
By the way, choosing which is better to buy new car or used, it should be noted that a loan for a used car will cost more due not only to the interest rate, but the amount of CASCO.
How to calculate a car loan: Video
Specialist in lending to individuals and representatives of small and medium-sized businesses. Experience in banking- over 15 years.
For individuals? Today you can do this using an online car loan calculator. This tool is currently available banking clients around the clock. Use auto loan calculator it is possible for personal preliminary calculations, choosing which one credit institution sign a loan agreement.
How to use an auto loan calculator?
- Decide what kind of car you need: a foreign car or a domestic car.
- Go to the bank's resource, select a lending program corresponding to the type of car, on its page open a calculator for calculating a loan online.
- Enter the loan data in the free fields of the calculator, including the loan term, payment amount, car type, minimum payment.
- Calculate a car loan with a calculator.
The data that the car loan calculator will provide, you will need to compare with other similar offers on the market. This will allow you to fully assess the lending conditions that have been formed by the banks of Russia today, and choose for yourself a product that has favorable interest and other repayment terms. The results that the calculation will give you on the bank's website will need to be clarified in the department of the organization. It should be remembered that they are for informational purposes only.
Which banks have the best offers for car loans?
In 2019, issue profitable car loan can be in different banks. Good programs VTB Bank, Gazprombank, Rosselkhozbank, UniCredit Bank, Raiffeisenbank offer for the purchase of domestic cars and foreign cars. Those who are interested in the minimum interest rate should contact Tinkoff, Raiffeisenbank, Post Bank, B&N Bank, Sovcombank. To choose the most profitable option for a car loan in these banks, it is enough to calculate a loan for a car with a calculator and compare the figures obtained. You can apply for a selected car loan at any bank branch in just a few hours.
Each bank has loans for the purchase of a car in its line of credit products. This is due to the popularity of such loans among individuals.
Involving borrowed money you can buy a car without a run from authorized dealers - each car dealership has several partner banks, as well as not a new vehicle from private sellers.
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The unstable financial environment does not have a negative impact on the domestic market for new and used cars. As before, the owners strive to change their vehicle to a newer and more modern one, realizing that the purchase costs are paid off by savings in further maintenance and operation, therefore this type of lending has prospects for development.
Increased competition among financial institutions inevitably leads to a reduction in the cost of loans for the purchase of a car and the creation of more favorable conditions for clients.
How to choose a view
Financial institutions offer car loans with different terms and conditions. The main criteria by which a client selects a product are the loan term and the interest rate - this determines the amount of monthly payments and the amount of overpayment.
There are also several programs for buying a car using bank funds, these are offers such as:
Loan for cars owned by a bank or partner companies | In this case, the applicant is invited to familiarize himself with the available models and choose the option of interest. Such a loan has loyal conditions - a low interest rate and a small initial payment by the buyer's personal funds. |
Express car loan | Registration and consideration of the application takes place in a short time, the package of documents with this option is minimal, most applications are satisfied. back side such a loan - high rate and therefore a significant overpayment. |
Loan without down payment |
|
Installment |
|
Buy-back loan |
|
Leasing | Distributed among legal entities... The car goes into the use of the company, while payments are made in installments during the agreed period. |
Each type of car purchase is beneficial under certain conditions, so the choice is made by the client based on personal needs and capabilities.
It is possible to calculate a car loan, knowing the term of the loan and the interest rate per annum, however, in the case of independent calculations, it is not always possible to take into account additional payments for servicing the loan, a possible decrease or increase in the rate, insurance premiums.
Each bank has an official website that presents a loan calculator. This tool allows you to correctly calculate the amount of monthly installments, specifying the desired conditions and data. You can clarify all the conditions with the bank employees by visiting any branch.
Some loans involve the possibility of early repayment. In case of payment of the debt amount earlier the deadline you can save a significant amount, you just need to contribute a little more money monthly. The availability of such an opportunity should be clarified with consultants or found in the loan agreement.
Summation example
There is a car, the price of which is 500 thousand rubles... According to the terms of the agreement, the loan term is 5 years (60 months).
The cost must be divided by the number of months, and this will result in a monthly payment for repayment of the principal debt, provided that the division is in equal shares. In this case it is 8333 rubles.
If an initial contribution from personal funds is agreed, it should be subtracted from the estimated amount, as a rule, this is the value 10-20% . 10% from the agreed cost - 50 thousand, therefore, there will remain to be paid 450 thousand and monthly payments for principal and interest will be lower.
Next, the percentage should be added to the amount received ( annual rate divided by 12) and additional payments. At the same time, payments for CASCO and life and health insurance of the borrower will be mandatory, banks set the service fee at their discretion, like other types of commission.
Every month, the principal debt is reduced by the calculated amount, therefore, the interest also decreases. Short-term loans are more profitable, since the interest rate is charged for fewer months. This scheme is valid only with a differentiated method of calculating charges.
Where is it more convenient to find out the amount of spending
The value of the car often equals the buyer's annual income. This is a significant amount, so you should carefully calculate your loan repayment options, otherwise the joy of owning can be overshadowed by exorbitant spending. Delay in payments threatens the accrual of interest and fines, deterioration credit history borrower.
In 2019, it is designed for a limited number of borrowers, since only 5 billion rubles have been allocated for this expense item.
What you need to know about buying a car on credit without interest - experts answer. Read on.
When calculating payments on your own, it is difficult to take into account all the nuances in the form of additional commissions, service fees. Insurance services may be provided by third parties.
Often, credit calculators on the official websites of banks and brokerage platforms do not take into account the full list of additional fees.
The most up-to-date information about the loan can be obtained from the selected bank. Consultants will tell you in detail about the services and conditions, provide data on monthly payments depending on the agreed amount and term.
Before signing a loan agreement, you should carefully study it.
The loan agreement regulates financial relations with the borrowing bank and contains detailed information on the procedure and amount of settlements
How to use an online calculator
To calculate a loan using online calculator it is necessary to familiarize yourself with the bank's offers and choose suitable conditions, it is better to do this on the official website of the institution. The required values are entered into the instrument fields, after which the amount of payments per month is calculated.
The data provided depends on the functionality of the calculator. In some cases, you can get a breakdown of contributions for each month of the loan term, as well as the amount of additional payments and insurance.
Monthly payment
Most banks require the submission of a document confirming the amount of the borrower's income. This is necessary to determine the client's solvency, institutions try to prevent the issuance of loans if the borrower after payment has less than half of the income left.
The amount of the monthly payment depends on the repayment system that operates in the bank:
Bank commissions and insurance services should be added to the data for calculating the principal and interest.
Borrowers often confuse the amount of overpayments with the interest rate for the year, while the amount of monthly payments can be several times higher than expected.
For the borrower, a differentiated method of calculating payments may become more profitable. Savings can be achieved through early repayment, if the terms of the contract allow it.
Advantages and disadvantages
The main advantage of a loan is the ability to buy a dream car right away without resorting to savings. Many owners use the loan constantly, updating and changing vehicles, participating in trade-in programs and taking advantage of other benefits for regular customers.
A distinctive feature of loans for cars and plus for borrowers is the absence of requirements for guarantors. The guarantor of safety will be the purchased vehicle, protected by CASCO insurance.
The main disadvantage is the overpayment of the loan. In some cases, a rash approach and the wrong choice of bank and credit can double the cost.
When buying a new car, you should understand that its price in the first 3-5 years use is falling rapidly in the market, but this does not affect loan payments. This means that in the end the client will still receive a car that is much cheaper than the loan paid.
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