Auto loan calculators are tools that help borrowers to calculate monthly car payments. Typically, the overall cost of a loan could depend on a number of factors like the loan amount, rate of interest charged, repayment term sought, etc. These parameters are used for determining level of monthly car instalments.

Although you could find several auto loan calculators online, the more convenient way to perform calculations is to make use of a excel template or spreadsheet which is totally downloadable. Such a move could enable you to compare two different loan options ease and help you to differentiate between the two.

Nevertheless, if you make effective use of car loan calculator when you are at a car dealership, you may find it extremely useful when negotiating interest rates and terms offered on a dealer arranged loan. It might also help you to determine the right type of auto loan for your situation.

Borrowers, who have **bad credit**, use auto loan calculators for knowing exact level of monthly car instalments. Remember, bad credit car loans have stringent requirements and it is necessary for applicants to understand the terms and conditions of loan repayment so as to ascertain affordability of the loan before signing any deal.

Understanding the terms of a loan payoff could be a simple exercise. You just need to do little bit of research while comparing various options that are available at your disposal. Here is a stepwise process which you may follow:

#### Get the car's actual value

To ensure that your calculations are accurate, you must take into consideration the exact value of the car which you are considering buying and not the sticker price. So take that into account after you have negotiated a discount successfully.

#### Factor in the loan percentage

You can create a car loan formula by making use of the interest rates which are being provided and use that for calculating monthly auto loan payments. Such a proposition will let you know how much the car actually costs.

#### Factor in any unique policy terms

Another major factor which needs to be accounted for is the terms and conditions for repaying the loan. Lenders require borrowers to repay the loan auto amounts within a stipulated time frame that is usually specified as number of months.

#### Multiply all factors

By effectively using an advanced online auto loan calculator, you can turn car loan rate percentage into decimal figure and then multiply it by car’s value. Divide the result by the term of loan to know your monthly car instalments.