How to Calculate Car Payments. You’ve just seen the car of your dreams, but

you’re not sure if the price is right. In a few steps, you can calculate your potential

car payments and decide if you’ll be able to afford a new ride. You will need Scientific calculator Pen and

paper and online payment calculator (optional). Step 1. Convert your loan’s interest rate to a decimal

number by dropping the percent sign and dividing the number by 100. Step 2. Divide the interest rate on your car loan

by 12. Write this number on a piece of paper. Step 3. Multiply the number by the loan’s principal

amount — the total amount of your car loan. Write this number down, as it will be used

in your final calculation. Remember to subtract any down payment you

might make from the new car’s purchase price when figuring out the principal amount. Step 4. Recall the number you got from dividing the

interest rate by 12 in step 2. Add 1 to this number. Step 5. Take the sum from step 4 raised to the power

of the number of months included in the term of your loan. For example, if you will make 36 monthly payments,

multiply the sum from step 4 by itself 36 times. Step 6. Calculate 1 divided by the result from step

of your multiplication. Round this number to the nearest hundredths

place to make it easier to work with. Step 7. Subtract this number from 1. Jot this number down for use in your final

calculation. Avoid the math by using car payment calculators

found on many auto dealer and bank websites. Step 8. Divide the number from step 3 by the number

from step 7 for your final monthly car payment. Think about whether this will fit into your

monthly budget. If so, you might want to ride off in that

dream car. Did you know The Smithsonian Institute has

been collecting cars since 1899, and has more than 60 cars in its collection, including

a 1913 Model T Ford and a 1903 Cadillac.

please…how use a calculator?

1+1=3? how make math

1+1=11?

4th

use less

well thx it helped me do my homework on how to caculate intrest on a car

…and so, with this simple calculation Robert Oppenheimer was able to discover nuclear fission.

[audience applause]

Got lost at Step: Pen & Paper.

or you know, you could just use a payment calculator like the ones on every single dealership website

what about step 5 I dont understand??

Just google (How much car can I afford) Done!

Orrrrrrrrr….

You could find out what the total of the car is.

Then what your interest rate would be.

So if it's 3.0 percent. × that by the total of the car…… then divide that by how many months your loan/lease is…..

Much more sumple.

So "total × interest " then add them

Then divide that number by the total….

Good information. Many people do not understand how to do this. If they would take the time to learn it could save them many dollars!

lost me at step 6

step 4 times step 8 divided by step 13

Step 6: How did you get .82 as an answer? I thought you were dividing 1.223/1 with an answer of 1.223. Now how am I suppose to follow from here if my answer is different than yours?

step 1: auto finance calculator online. step 2: oh wait that's it

Step 1: loan interest rate / 100 = a

Step 2: a / 12 = b

Step 3: b x principle amount = c

Step 4: b + 1= d

Step 5: d^(term loan) = e

Step 6: 1 / e = f *round to the nearest

Hundreds

Step 7: 1 – f = g

Step 8: c / g = your monthly payment!

I still could not get it. I need to calculate $20k principle, 60 months, rate 2.74

step 9 completely disregard steps 1 through 8, save up and pay for the car in cash.

Manual workings

Step 1. Have cash money

what the hell….

some one explain step 5.

.0056 x 36 = .2016

1.0056 x 36 = 36.2016

how the hell did he get? 1.223?

he said Sum of step 4. x 36 = 1.223

what is the "Sum of step four!!!???"

THIS SUCKS!

APRIL FOOLS

Why can't the interest be purley a factor of the amount financed… for example: your interest rate is 4% your loan amount is $20k. that would be $800 in interest that would you would have to pay over the term of your loan… why doesn't this work?

W – T – F!

Other online calculators give me 307.58 not 311.11, why is it off by almost 4 dollars

This is someone explaining it to another math mathematician lol

I was lost after 10 senconds…

Easier way, before buying a car, get a pre-approved loan. From that you can make a list of payment amounts per $1000 of loan, the bank or credit union will give you that. For example, a 2% loan at 60 months has a monthly payment of $17.53 per $1000. if the amount financed is $25,500 the payment is 17.53 * 25.5 = $447

Step 1. Save up and pay cash for them.

I think I am going to get a bicycle instead…

would you like that super sized sir?

A little girl will go hungry today why is this important again?

You can also rearrange the formula for calculating PV of ordinary annuity to solve for monthly payment given PV.

Great post! thank you.

how about, tire iron, though window drive away ?

Why would this video make somthing so simple seem so complicated ,

Im glad i had watched a few videos and allready understood what the hell they are trying to teach me

Just google car payment calculator morons

so in this scenario, the 6.74% is 6.74% of what exactly??

Wtf lol

ok..I got the scientific calculator..now what

Step nine, call at bankruptcy attorney.

https://www.youtube.com/watch?v=mCbKt-vbLwI&t=28s

I think I'll be walking……

Or just use an online calculator. GOOGLE auto loan calculator. Very simple and very useful. You just input the amount financed, interest rate, and terms.

You should explain what each step gives you

So i watched this video and changed each of the numbers to a variable so i could create a step by step formula. Pulled this out during the negotiations and the sales people were like "uhhh ohhhh" ….. got the general manager. Lol

I lost when he said get pen and paper

What in the world, you got something more simple that's to much. Got my brain hurting

so sad I graduated but Idk how to work this:"(

My math gave me $307.58 with those terms and figures. Not sure I trust this method if the can't even do the math right. Looking to develop my own calculator in Excel for this for loan payments, this was no help since I can't trust it.

My brain just exploded

I don't want to buy a car after this lol

https://youtu.be/AuA2EAgAegE

Step nine:

this sucks!!!

So they financed a $10,000 and with tax and interest it went up to 11,200?

I went in to finance a 8,000 car and at the dealers finance I was told it would 60 payments of 360ish which is around 22,000 so I got up slapped the finance leech and walk away

Step 1: Use an online car payment calc with a "Gap" feature of $299 or add a "1" under Sales Tax Rate within the calculator and the monthly payment should come out the same.

this math doesn't equal out to the same number the dealer gave me nor the number numerous car finance calculators gave me. Who's lying to me here?

I'll just continue walking

Thanks thou…

they should make another video by giving example how these numbers work

i can here for a class project

i hate this class

It worked, I did the math by myself with simples numbers and I compared it with an auto loan calculator app and got the same results.

If you came here for answers to your questions, you left with questions to your questions and no answers.

That moment when you forgot to change the percent to a decimal after a whole semester of stats, and you calculate the monthly payment of 4447 dollars

Step 1: learn how to write digits

This is very confusing for me. I am out now.

Thank you. Knowing the math I can work backwards from the monthly I want, and determine the total loan and down payment needed.

Finally the cost of car was 10000.with interest for 5 yrs it became 25000

It's worth mentioning that the method presented in this video is actually incorrect for most car loans in the US. Car loans in the US are compounded continuously, not monthly like this video assumes.

https://theautoloancalculator.com/category/loan-calculators/

wtf

What a freaking bad video👎

Ok. How much will it cost to hire an accountant?

I just took the same numbers I got from the example from this video and plugged them into payment calculator and got completely different numbers

If I did the math correct my car payment is $0.57 a month. Thanks.