An Auto Loan Calculator will give you your monthly payment as well as the amortization of principal to interest with a simple click. Just enter the price of the vehicle, the interest rate and the number of months (periods) you wish to carry the loan, and the auto loan calculator will instantly display the results.

You may want to consider an auto lease to lower monthly payments. A consumer brochure on leasing, available online from the Federal Reserve Board, will explain much more. Changes in the Federal Trade Commission’s rules on advertising consumer leases are summarized in this online brochure. In leasing language, today’s value is called the “capitalized cost”. Tomorrow’s value is called the “residual value”. The lower the capitalized cost and the higher the residual value, the better the deal is for the consumer.

The monthly fee is calculated through the “money factor,” which is similar to the interest rate paid on a conventional loan but expressed as a difficult-to-understand fraction.

Loan calculators convert a money factor to a recognizable interest rate by simply multiplying it by 24. For example, a money factor of .00345 would be equivalent to roughly 8.3 percent interest. The money factor determines how much you pay the finance company each month for the privilege of driving that car.

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