Taking out a car loan can be a daunting task due to the many different terms and regulations. However, for those with patience, it is possible to navigate this labyrinth of financial jargon. One of the most important bits of information to know regarding your car loan involves your interest payments. Luckily, calculating your interest payments is something that can be done in a few minutes with the help of an online calculator.
Gather the necessary information about your car loan. The four things that you will need to know are the loan amount, the loan term, the loan interest rate (APR), and the date that the loan was provided.
Go to an online loan calculator, such as the one found at bankrate.com.
Enter the information gathered in Step 1 into the appropriate text fields.
Click the calculate button. The number that appears is the total cost of the loan including interest payments.
Subtract the original cost of the loan from the total cost of the loan. This will give you the total amount of interest that will be paid over the life of the loan.
Divide the total amount of interest that will be paid by the number of months within the loan's term. The resulting number is your interest payment per month.
