Unlike the simpler and more conventional Loan Calculator, the Automobile Loan Calculator evaluates six numeric inputs and it will solve for two unknown values. The numeric inputs are arranged in two groups:
The second group of inputs include:
Usually the user will enter any two values in each group and a '0' (zero) for the one remaining unknown value in each group. The calculator will calculate both unknown values.
This means the user has considerable flexibility when reviewing loan scenarios.
For example, the user can enter the purchase price, down payment amount available, zero for the loan amount, a number for anticipated payments and annual interest rate and zero for the payment amount. The calculator will calculate both the amount of the loan and the periodic payment amount.
There are several variations on this calculation and for at least one scenario, the user can enter two unknowns in the top grouping of inputs.
For example, the user may know what he or she wants their regular payment to be and how much cash they have available for a down payment. If they also enter the number of payments due for the loan and the annual rate, the calculator will calculate both the total purchase price and the amount that will have to be borrowed.
Note: As you may have guessed, the name "Automobile Loan Calculator" is a bit of a misnomer. The user may use this calculator to evaluate any purchase that is to be finance which involves the borrower making a cash down payment (or which involves a trade-in that is converted to a cash value).
Further Note: If the user wishes to evaluate a loan that involves a down payment but the down payment is expressed as a percentage of the purchase price (i.e. 10.0% down), then use the Mortgage Calculator.
Here's our online auto loan calculator.
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