Car loans can be an effective way to finance the purchase of your dream car but before you start hunting for your hire purchase loan, wouldn’t you like to know how much you would have to shell out for the brand new car of yours?
Car loan calculators are an effective method to calculate your monthly instalment amount and interest for your car loan or hire purchase loan. This would help you to manage your budget accordingly.
Even without the use of an online calculator, you can use the following formula to estimate your monthly payments
Advantages Of Using Car Loan Repayment Calculator
Following are some of the benefits of using the online car loan repayment calculator-
- It is advantageous to know beforehand, how much of your monthly income will go into loan repayments. Car loan calculator will let you know your tentative car loan monthly installment so that you can plan and manage your finances, better.
- By adjusting parameters like loan amount and loan tenure in the car loan repayment calculator, you can find out that optimum value of monthly repayment which is most likely to suit your pocket.
- Although, loan processing charges are never in the hands of the customer and are at the sole discretion of the bank, you can fill in processing charges offered by various banks to know which bank to go to, for your car loan.
- The amortization table furnished by the loan repayment calculator, lets you know your repayment schedule which is useful in enabling you to plan your future finances accordingly.
How To Calculate?
Use the following formulae to calculate your car loan.
Total Interest = [Interest rate/100]*Total Loan Amount*Total Loan Tenure (years)
Monthly Interest = Total Interest/Total Loan Tenure (months)
Monthly Instalment = (Total Loan Amount + Total Interest)/Total Loan Tenure (months)
|Total Loan Amount||Interest Rate||Tenure||Total Payable Interest||Monthly Interest||Monthly Instalment Amount|
|RM50,000||3.5% p.a.||5 years||RM8750||RM145.33||RM979.17|
|RM60,000||3.5% p.a.||5 years||RM10,500||RM175||RM1175|
|RM75,000||3.5% p.a.||5 years||RM13,125||RM218.75||RM1468.75|
Using Online Car Loan Calculator
You can use an online calculate to find your total interest and monthly instalment amount.
You need to key in details such as your loan amount, interest rate, loan tenure and any down payment if applicable. The online calculator will automatically calculate and give you the required results.
Having an estimate of your monthly instalment amount would help you in settling on a loan amount that you can pay with ease and also help you plan your budget and ensure you don’t miss out on payments.