Overhaulin'

How do you calculate the interest rate on a car loan?

If the interest rate (as an example) is 18% on a loan of $8000 what would be the monthly payment over 60 months and how do you calculate it?

Public Comments

1. This might be useful for you http://www.cars.com/go/advice/financing/calc/loanCalc.jsp?mode=full
2. You need to go to Yahoo and browse for a loan calculator. It is not simple math. That is how I do it anyway.
3. Boy, I hope those are only hypothetical numbers you're using. 60 months is a long time to finance a used car. It will probably break down enough that it will be in the junk yard before you pay it off, and 18% is highway robbery! If you can't get better terms than that, you can't afford the car.
4. $221.43 a month fo the next 60 months. visit http://www.edmunds.com and they will calculate it for you.
5. HINT: Eighteen percent is usury HINT HINT: The finance charges alone on this loan are $4188.85 Payments are $203.15 per month.
6. 1. 203.15$/month. Total yu pae=12,188.75$ 2. tu pute the paement is sumwot komplikated... yu need tu get wot em kall "present value av a annuity" first: konvert interest rate...8% bekum 0.08...kalled "r" present value=[1-(1+r)**-n] /r n=number yeers paement=($ yu borro)/(present value) ***** watch it...this formula is for 1 paement per yeer & interest kompound 1 time per yeer. Tu yuze monthly paements, gotta konvert R=r/12 N=12*n present value=[1-(1+R)**-N] /R
7. That interest rate is terrible. You shouldn't even consider calculating it. But the answer is $203.15/month. You will pay a total of $12,188.85 over the life of the loan. In excel, the formula is: =pmt(18%/12,60,8000,0,0)
8. check out this site they have all kinds of calculators, http://www.speedyloanapprovals.com/calculators.html