How do you calculate a car payment?
To calculate the monthly payment on an auto loan use this
car payment formula:
c = Monthly Payment
r = Monthly Interest Rate (in Decimal Form) =
(Yearly Interest Rate/100) / 12
P = Principal Amount on the Loan
N = Total # of Months for the loan ( Years on the loan x 12)
Example: Monthly payment for 5 year auto loan, with a principal
of $25,000, and a yearly interest rate of 6.5%:
r = (6.5 / 100) / 12 = .005416667
P = 25,000
N = (5 x 12) = 60
The Monthly Payment is $489.15
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