You can use this automobile or home equity loan calculator to compare the monthly and total cost for these two types of loans. The calculator provides the monthly payments for each option, the total cost of each loan, and overall savings, if any.
The variables used in our online calculator are defined in detail below, including how to interpret the results.
This is the purchase price of the car that you have negotiated with the dealership or private seller. This figure should not include rebates, trade-in allowances, or down payments.
If you are lowering the amount you're going to finance by providing money up front in the form of rebates, trade-ins and / or cash, then enter that amount here.
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.
If the car dealership or lender charges you any upfront fees for the car loan, then enter that amount here.
The term of the loan is the number of years over which the loan will be paid. The most common car loan terms are 3, 4, and 5 years.
This is the annual interest rate on the home equity loan. This is not the APR, which takes into account other costs associated with the loan.
Most home equity loans will charge you an upfront fee. This is where you enter any fees paid to the financial institution, bank, or lender.
The term of a home equity loan may be considerably longer than that of a car loan. This is the term over which the loan is paid, stated in years.
Under certain conditions, you may be allowed to deduct the interest expense you are charged with a home equity loan from your state and / or federal income taxes.
The net amount financed is calculated by taking the negotiated price of the car and subtracting down payments.
This is the monthly payment necessary to repay the car loan over its lifetime.
This is the monthly payment necessary to repay a home equity loan over its lifetime.
The monthly savings is the difference between the auto loan payment and the home equity loan payment each month.
The total amount that is paid to the car dealership, or lending institution, over the life of the car loan.
The total amount of interest charges over the term of the car loan. This is the cost of borrowing money from the lending institution, plus any fees charged.
The total amount paid to the lending institution over the life of the home equity loan.
The total amount of interest charges over the term of the home equity loan. This is the cost of borrowing money from the lending institution, plus any fees charged.
In many situations, you may be able to deduct the interest expense of a home equity loan from your state and / or federal income taxes. This is the potential tax benefit a home equity loan provides to you.
This is the total cost of the home equity loan, which includes interest expense, fees, and potential tax benefits.
A positive number here indicates the overall potential savings that a home equity loan might provide in financing the car's purchase versus a more traditional car loan.
Auto or Home Equity Loan Calculator - Copyright © 2005 - 2015 Money-Zine.com (Last Reviewed on January 16, 2015)
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.