1. What is the RAC Car Loan Calculator?

The RAC Car Loan Calculator helps you estimate your monthly payments and total interest for a car loan. It uses standard loan amortization formulas to calculate Equated Monthly Installments (EMI) and total interest based on principal amount, interest rate, and loan term.

2. How Does the Calculator Work?

The calculator uses these formulas:

Where:

• \( P \) — Principal loan amount (AUD)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Number of monthly payments (loan term in years × 12)
• \( t \) — Loan term in years
• \( PMT \) — Monthly payment amount (AUD)
• \( Interest \) — Total interest paid (AUD)

Explanation: The first formula calculates the fixed monthly payment, while the second estimates total interest over the loan term.

3. Importance of Loan Calculation

Details: Understanding your monthly payments and total interest helps with budgeting and comparing loan offers. RAC car loans typically have interest rates between 5.69% and 8.99% p.a.

4. Using the Calculator

Tips: Enter the loan amount in AUD, annual interest rate (between 5.69-8.99%), and loan term in years (1-30). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the typical interest rate for RAC car loans?
A: Rates typically range from 5.69% to 8.99% p.a., depending on your credit profile and loan terms.

Q2: Does this include all loan fees?
A: This calculates principal and interest only. Additional fees like establishment fees may apply.

Q3: How accurate is this calculator?
A: It provides estimates based on standard formulas. Your actual payments may vary slightly.

Q4: Can I calculate part-year terms?
A: The calculator uses whole years. For partial years, you may need to adjust the monthly payment manually.

Q5: Is the interest rate fixed or variable?
A: This calculator assumes a fixed rate. Variable rate loans would require different calculations.