You can use this low interest or zero percent car loan calculator to figure out your monthly savings if you were to be offered this type of financing option for your new auto. The calculator allows you to compare your monthly payment savings and total savings over the life of the car loan.
Calculator Definitions
The variables used in our online calculator are defined in detail below, including how to interpret the results.
The car loan amount is the net amount financed after subtracting out trade in allowances and down payments. This value is used as the basis for all the monthly car loan payment calculations.
Annual Interest Rate (%)
This is the annual interest rate on the auto loan. This is not the APR, which takes into account other costs associated with the loan. This particular calculator will compare this percentage rate to a zero percent financing option.
Monthly Car Loan Payment ($ / Month)
This is the monthly payment necessary to repay the car loan over its lifetime. This calculator provides the user with two monthly loan payments - one for the standard financing arrangement and a second reflecting a low interest or zero percent financing arrangement.
Savings on Monthly Payment ($ / Month)
This is simply the difference in your monthly payment between a standard financing arrangement and zero percent financing.
Total Payments ($)
The total amount paid to the bank or lending institution over the life of the car loan. Once again there are two values calculated, one for the standard loan and one for zero percent financing.
Total Low Interest Savings ($)
This is the total value that a low interest rate loan or zero percent financing delivers in terms of total savings over the life of the car loan.
Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.
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