Online car loan calculators are available to determine monthly payment or even car purchase price. Online auto loan rate calculators are available for buying or renting cars. Such tools are helpful in finding out which is the better value to opt for. The only limitation of a car loan calculator is that it is liable to change, as the actual repayments are volatile. Car loan calculators are useful as the car loan payments should be calculated before hand and dealer costs for cars are to be looked up to save one from being deceived by banks and finance companies.

**Monthly Installment Calculations**

Calculators share general feature and most of them demand the amount of loan to be provided, and the number of installments for paying back. These help find out financial commitment involved. An auto loan calculator can be offered free on the internet as an excel spreadsheet download area.

**The Three Factors Affecting Loan**

In car loan calculation, it is important to estimate the monthly payments. Three basic factors to consider during car loan calculation are interest rate, total loan principal and loan period. This can calculate our budget and monthly payments. These factors are to be considered and it is as important as asking a loan officer or going online. Online lenders have a simple car loan calculator that is accessible from the website that will help determine the affordability.

The Loan Principal – In car loan calculation, the loan principal is the amount of money originally borrowed and the total interest charges at the end of the loan period depend on the amount of the loan principal and the loan period. The more principal borrowed, the more money will have to be paid back over the loan period. With each monthly payment, the total loan principal gradually deducted. For the first few months, a good percentage of the monthly payments are used to cover the interest costs. A small percentage is used to pay off the loan principle and as the loan matures, more payments will go towards paying the principal and less to pay the interest of the loan.

Interest Rate And The Loan Period – The calculators are available online to determine the loan tenure on entering the monthly installments and the interest rates. Interest rates vary with lender and it depends upon the credit scores of the borrower. Higher the FICO score lower the interest rates would be.

Types Of Car Loan Calculators Available Online

**Drawbacks**

These web based calculators help calculating only the car price but not the affordability. Once the car is bought using a car loan, a person’s budget should add fuel and maintenance costs, which are not calculated. The calculators even miss out on calculating taxes and liens.

Most lenders want people take out as much loan as possible, as it is profitable for them. Car loan calculations give an estimate of the total costs, which will determine affordability.