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Auto Loan Payment Formula:
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The 84 Month Auto Loan Calculator helps you determine your monthly payment for a 7-year (84-month) car loan based on the loan amount and interest rate. It also shows the total cost of the loan and total interest paid over the entire term.
The calculator uses the standard loan payment formula:
Where:
Explanation: The formula calculates the fixed payment amount required each month to pay off the loan in full with interest by the end of the term.
Details: Longer loan terms (like 84 months) result in lower monthly payments but higher total interest costs compared to shorter terms. This calculator helps you understand the full financial commitment of an 84-month auto loan.
Tips: Enter the total loan amount (after any down payment) and the annual interest rate you qualify for. The calculator will show your monthly payment, total payments, and total interest.
Q1: Is an 84-month car loan a good idea?
A: While it lowers monthly payments, you'll pay more interest overall and may be "upside down" (owe more than the car's value) for most of the loan term.
Q2: What's the average interest rate for an 84-month loan?
A: Rates vary but are typically higher than for shorter terms, often 1-2% higher than 60-month loans due to increased lender risk.
Q3: Can I pay off an 84-month loan early?
A: Yes, but check for prepayment penalties. Early payoff saves interest but may not be prioritized by the lender's payment application.
Q4: How does a larger down payment affect the loan?
A: A bigger down payment reduces the principal (P), resulting in lower monthly payments and less total interest paid.
Q5: Are there other costs not included in this calculator?
A: Yes, this doesn't account for taxes, fees, insurance, or potential negative equity from trade-ins which affect total cost.