back to articles | November 07, 2022 | Alice Jenson
Categories:   Loan Calculators & Rates
Different Types of Car Loan Calculators and How They Can Help
Deciding on a car loan can be tricky. Do you want to lease or buy? What's the difference between pre-qualified and pre-approved? How much can you afford to spend each month? There are a lot of factors to consider, and a car loan calculator can help.
There are several different types of car loan calculators, each with its own function. Some calculate your monthly payment, some show you what you can afford, and others help you compare interest rates. No matter what kind of information you're looking for, there's a car loan calculator out there that can help.
In this article we will cover
- Monthly Payment Calculator
- Affordability Calculator
- Interest Rate Comparison Calculator
Monthly Payment Calculator
A monthly payment calculator is probably the most basic type of car loan calculator. All you need to do is enter the price of the car, the down payment, the interest rate, and the length of the loan, and the calculator will tell you how much your monthly payment will be.
This kind of calculator can be helpful if you're trying to figure out how much car you can afford. By inputting different prices and down payments, you can get a general idea of what your monthly payments might look like. You can also play around with the interest rate and loan length to see how those variables affect your monthly payment.
An affordability calculator is similar to a monthly payment calculator in that it requires you to input the price of the car, the down payment, the interest rate, and the length of the loan. But instead of telling you your monthly payment, it tells you the maximum amount you can afford to spend on a car.
This kind of calculator can be helpful if you have a monthly budget in mind but aren't sure how much "car" that budget will get you. It's also useful if you know how much money you want to spend on a car but don't know what kind of monthly payment that will result in.
Interest Rate Comparison Calculator
An interest rate comparison calculator is helpful if you're trying to decide between two different financing offers. Let's say one lender is offering an interest rate of 3% for 60 months and another is offering an interest rate of 4% for 72 months. Which offer is better? The answer isn't always clear.
To figure it out, you would enter both offers into an interest rate comparison calculator along with the price of the car and your down payment. The calculator would then show you which option results in a lower overall interest cost. In this example, it would probably be the 3% for 60 months option—but not always. That's why it's important to compare offers side by side before making a decision.
A car loan calculator can be a useful tool in decides what kind of financing is right for you. If you're not sure how much car you can afford, try using a monthly payment or affordability calculator. If you're trying to decide between two different financing offers, use an interest rate comparison calculator. No matter what kind of information you're looking for, there's a car loan calculator out there that can help.