Do you plan to buy a new car? And have you calculated your budget? If you already spare your budget, the next step is to find your targeted car. But, what about if your budget is not enough and you want to find a loan for your car? In that case, you might find a tool to calculate it roughly before decide the amount of money you want to loan.
This is a car loan calculator created in Microsoft Excel you can use for your purpose. It will help you to calculate monthly payment, as well as its interest. This calculator is just one application of excel built-in function for monthly payment, PMT(rate,nper,pv,[fv],[type]), where for this car loan payment, you have to put your car loan interest rate for “rate” parameter, your loan period for “nper” parameter, where typically car loan will have a short payment period, and your car price for “pv” parameter. [fv] and [type] parameters are optional, and default values for those parameters are zero.
There is not much information for this basic financial function, and if you want to understand more about this function, just use this function for other loan types and play around with all parameters. There are still plenty of other payments for administration purposes you must spare in your budget. The amount will depend on the bank or finance institution that you plan to apply for loan.
You can download the file here.