Work out car loan emi instantly with clear inputs, formula shown and shareable results.
The standard amortising loan payment is P x r / (1 - (1+r)^-n) with r the monthly rate. Total interest is what makes the true cost visible: 18,000 over five years at 7.9% costs about 3,850 in interest on top of the capital.
Loan payment
M = P x r / (1 - (1 + r)^-n), r = annual rate / 12, n = months
No. It lowers the monthly payment but increases total interest, and on a depreciating asset it raises the risk of negative equity.
No. APR includes fees and charges, so it is the figure to compare between offers. Two loans at the same nominal rate can have very different APRs.