Arvest Bank Auto Loan Calculator

How to Use This Calculator

To use the Arvest Bank Auto Loan Calculator, follow these simple steps:

1. Enter the loan amount you want to borrow (e.g., $25,000).
2. Enter the annual interest rate offered by Arvest Bank (e.g., 4.5%).
3. Select the loan term in years (e.g., 5 years).
4. Click the Calculate button to see your estimated monthly payment and total interest.

The calculator will display your estimated monthly payment, total interest paid over the loan term, and a breakdown of how your payments are allocated between principal and interest.

How Auto Loan Calculations Work

Auto loans use the amortization formula to calculate monthly payments. The formula is:

The calculator uses this formula to determine your monthly payment based on the loan amount, interest rate, and term you provide.

Key Terms

• Principal (P): The amount of money you borrow.
• Annual Percentage Rate (APR): The yearly interest rate charged on the loan.
• Loan Term: The length of time to repay the loan, typically in years.
• Monthly Payment (M): The amount you pay each month.
• Total Interest: The total amount paid in interest over the life of the loan.

Example Calculation

Let's say you want to borrow $25,000 at an annual interest rate of 4.5% for 5 years. Here's how the calculation works:

1. Convert the annual interest rate to a monthly rate: 4.5% ÷ 12 = 0.375% or 0.00375 in decimal form.
2. Calculate the number of payments: 5 years × 12 = 60 months.
3. Plug the values into the formula:
   M = $25,000 [ 0.00375(1 + 0.00375)^60 ] / [ (1 + 0.00375)^60 - 1 ]
4. The calculator computes this to find your monthly payment of approximately $467.50.

Over 5 years, you would pay a total of $1,182.00 in interest, making your total repayment $26,182.00.