Bankrate Auto Loan Calculator 84 Months

This Bankrate auto loan calculator helps you estimate your monthly payments for a 7-year (84-month) auto loan. Simply enter your loan amount, interest rate, and down payment to get an accurate payment estimate.

How to Use This Calculator

Using this calculator is simple:

Enter the total loan amount you're requesting
Input your annual interest rate (APR)
Specify your down payment amount (if any)
Click "Calculate" to see your estimated monthly payment

The calculator will display your monthly payment amount, total interest paid over the loan term, and the total amount paid at the end of the loan period.

Formula Used

The calculator uses the standard auto loan payment formula:

M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ] Where: M = Monthly payment P = Principal loan amount (Loan Amount - Down Payment) i = Monthly interest rate (Annual Rate / 12 / 100) n = Number of payments (84 months)

This formula calculates the fixed monthly payment required to pay off the loan in 7 years (84 months).

Worked Example

Let's calculate a 7-year auto loan with these parameters:

Loan Amount: $30,000
Annual Interest Rate: 5%
Down Payment: $3,000

Principal (P) = $30,000 - $3,000 = $27,000

Monthly Interest Rate (i) = 5% / 12 / 100 = 0.0041667

Number of Payments (n) = 84

Using the formula:

M = 27000 [ 0.0041667(1 + 0.0041667)^84 ] / [ (1 + 0.0041667)^84 - 1 ] M ≈ $425.34

Your estimated monthly payment would be $425.34.

Frequently Asked Questions

What is the difference between APR and interest rate?

APR (Annual Percentage Rate) is the total cost of credit, including any fees and points charged by the lender. The interest rate is the actual percentage charged on the loan amount. APR is always higher than the interest rate.

How does a down payment affect my monthly payment?

A larger down payment reduces the principal amount you need to finance, which typically results in lower monthly payments. However, the exact impact depends on the loan terms and interest rate.

Can I refinance my auto loan after 7 years?

Yes, you can refinance your auto loan after 7 years, but you'll typically need good credit and may have to pay closing costs. Refinancing can help you secure a lower interest rate or better terms.