How to calculate the total payment of interest on the loan of a car
If you are thinking of buying a car and you have no choice but to finance it in its entirety or a part; Surely this can help you out. If you calculate the total amount of interest that you will pay once the loan is due, you may decide to give some input. From .com we present a simple way to calculate the total payment of interest on the loan of a car .You will need to:
When you go to the financial or your bank, the first thing they will ask you is the amount you want to finance. Let's say you need 12, 000 euros.
They will apply the corresponding interest rate (which may vary depending on the entity, the circumstances ...). You are interested in being informed about the monthly payment that you are going to pay for the loan . Suppose they tell you that you will pay 230 euros in a total of 5 years.
Then, multiply the monthly payment (230 euros) for the total monthly payments (5x12 = 60 monthly payments). The total is 13, 800 euros. This is the total you will pay for the loan for your car .
If you subtract the 13, 800 minus the amount you wanted to finance (12, 000), you already have the total interest you will pay for your vehicle, about 1, 800 euros.
This is an approximate calculation, keep in mind that it will vary depending on the interest rate you apply and the amount of fees you request (more fees, more interest). Surely, if you manage to raise some money to give a good ticket for your car, do not have to pay so much interest finally.Tips
- Many banks have the online interest calculator service.