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  F&I Tools Trademark®

By Payment

Slide Squares to Change Terms
Monthly Car Payment: $
Months:   aka years
Interest Rate: %
How is the monthly payment calculated?
​

​The monthly payment (M) equals the loan amount (L) times the X factor (X) in an auto loan.
​
M = LX.  Sounds so easy!  
But...

​What is the X Factor in a car loan?
​

​​The X Factor is the equation used to charge interest to the unpaid portion of the loan every month as the buyer pays it down over the term.

​X = (MPR x Z) ÷ (Z - 1)
Car Loan Math
Can I calculate by hand?

Yes!

​To check the math, remember that Annual Percentage Rate (APR) is converted to Monthly Percentage Rate (MPR) in our car loan calculator.

APR ÷ 12 = MPR

And Annual Term is converted to Monthly Term (T) so all factors relate accurately. So instead of using 6 years, compute with 72 months.

​Once the X Factor is calculated, the rest of the car loan equation is easy. 

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Want to know more about auto finance?

Check out the F&I Underwriting Guide.

Auto Loan Calculators:

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  • Manufacturer Warranties
  • Car Tax by State
  • DMV Fees
  • Bank Payoffs
  • My Vehicle Title
  • Get My Lost Title
  • Bill of Sale
  • Sales Report
  • F&I Menu
  • Loan Calculator
  • Insurance Companies
  • Roadside Assistance
  • Alpha Bravo
  • Mil Gov Pay
  • Forms
  • Underwriting
  • About
  • VW Warranty
  • Jeep Warranty
  • Ford Warranty
  • Ram Warranty
  • Toyota Warranty
  • Nissan Warranty
  • Hyundai Warranty