1. What is an Auto Loan Amortization Calculator?

This calculator shows how your auto loan payments are split between principal and interest over time, with options for both weekly and monthly payment frequencies.

2. How Does the Calculator Work?

The calculator uses these amortization formulas:

Where:

• \( Interest_k \) — Interest portion of payment k
• \( Principal_k \) — Principal portion of payment k
• \( Balance_k \) — Remaining balance after payment k
• \( r \) — Periodic interest rate (annual rate divided by number of periods per year)
• \( PMT \) — Fixed payment amount per period

3. Importance of Amortization Schedule

Details: Understanding your amortization schedule helps you see how much interest you'll pay over the life of the loan and how extra payments can reduce your total interest costs.

4. Using the Calculator

Tips: Enter your loan amount, interest rate, loan term (in years), and select payment frequency (weekly or monthly). The calculator will show your payment amount and a partial amortization schedule.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between weekly and monthly payments?
A: Weekly payments result in more frequent but smaller payments, which can reduce total interest paid over the life of the loan.

Q2: How does the interest rate affect my payments?
A: Higher interest rates increase both your payment amount and the total interest paid over the life of the loan.

Q3: Can I see the full amortization schedule?
A: This calculator shows the first 12 payments. For a full schedule, consider using spreadsheet software.

Q4: What if I make extra payments?
A: Extra payments reduce the principal faster, decreasing both the loan term and total interest paid.

Q5: Are there any fees included in this calculation?
A: This calculator only accounts for principal and interest. Actual loans may include additional fees.