1. What is the RBC Auto Loan Calculator?

The RBC Auto Loan Calculator helps you estimate your monthly payments for a car loan from Royal Bank of Canada. It uses the standard loan amortization formula to calculate your payment based on loan amount, interest rate, and term.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( PMT \) — Monthly payment (CAD)
• \( P \) — Principal loan amount (CAD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Number of monthly payments (term in months)

Explanation: The formula calculates the fixed monthly payment required to fully amortize the loan over its term, including both principal and interest.

3. Importance of Loan Payment Calculation

Details: Calculating your expected monthly payment helps with budgeting and ensures the loan fits within your financial situation before you apply.

4. Using the Calculator

Tips: Enter the loan amount in CAD, annual interest rate (as offered by RBC), and loan term in months (typically 24-84 months for auto loans). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this include RBC's current interest rates?
A: No, you must enter RBC's current offered rate. Rates vary based on credit score, loan term, and vehicle type.

Q2: Are there other fees not included in this calculation?
A: Yes, this doesn't include potential administration fees, insurance, or taxes which may affect your total cost.

Q3: What's the maximum term RBC offers for auto loans?
A: RBC typically offers terms up to 7 years (84 months) for new vehicles, shorter for used vehicles.

Q4: Can I calculate bi-weekly payments instead?
A: For bi-weekly payments, divide the monthly payment by 2 and adjust the term to number of bi-weekly periods.

Q5: How accurate is this calculator?
A: It provides a close estimate but your actual payment may differ slightly due to rounding or specific loan terms.