Auto Loan EMI Calculator

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What is the meaning of loan?

When it comes to finance, then a loan basically means that it is the lending of the money from an individual or organisation or an entity for that matter to someone else, now that can be either an individual or entity or an organization. Therefore, a loan can be termed to be the debt which is given by one party to another party that too at a certain interest rate. In addition to this, before permission is given to provide a loan a number of things come in to the picture.

Auto Loan EMI Calculation

Amount (Vehicle Price) RS
Down Payment RS
Annual Interest Rate %
Term/Period months
Monthly Payment RS
Total Interest Payment RS
Total Amount to Pay RS

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These other things include the following like that of the principal amount which is being borrowed apart from the interest rate that a lender will be charging & finally the repayment date. At times when handing out a loan there can be seen a reallocation of subject assets for a specific period of time; such a case will be seen between a lender as well as a borrower. And when it comes to providing the loan, the said borrower will receive certain amount of money from the lender & this money is known as the principal.

The borrower on the other hand has to keep the fact in mind that they repay the stated amount to the lender by the specified date in the future. When the talk revolves around the auto loan then the same rule which has been stated above is used in the auto loan calculator as well. Furthermore, these auto loans are generally given by the financial institutions like that of not only the credit card companies but also the banks.

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What is meant by auto loan?

Auto loan can be stated to be one type of personal loan which is taken in order to purchase the automobile. This auto loan is also at times known as the automobile loan or even car loan at times. In other words, this personal loan tends to be a loan given for the personal use only to those people who are deemed to be fit to repay the amount being borrowed. Besides this, the people who wish to take this auto loan must remember that they will get the loan only when they fulfil the eligibility criteria rules.

How to use an auto loan calculator?

In order to use the auto loan calculator, you will have to enter the following details in the fields provided – vehicle price, down payment, annual interest rate apart from the loan tenure before clicking on the calculate tab. With the help of this auto loan calculator, you will get to know as to how much amount is to be paid every month in order to repay the loan.

Auto loan calculator formula

To calculate the auto or the car loan, the formula used is as follows –

\(A\,=\,P \,\times \frac {(\,r\, (\,1\,+\,r\,)^n\, )}{(\,(1\,+\,r\,)^n\,-\,1\,) }\)

In the above car loan formula, A means the monthly payment while P is the principal or the actual amount taken. The interest rate or the rate of interest is denoted by r while the number of months or the loan tenure is represented by n.

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