| Amortization is the process of paying off a loan. Every | | | | the price, sales tax and other fees and changes like |
| month a portion of the principal and some interest is | | | | destination changes and trade in value of an old car. |
| paid. Amortization formula is the calculation of the | | | | Rounding: Actual payments must be rounded to the |
| payment amount per period. An amortization calculator | | | | nearest cent and the spreadsheet takes care of this |
| is used to find the periodic payment amount due on a | | | | process. |
| loan based on the amortization process. | | | | Zero balance: In amortization spreadsheet, the formula |
| Auto loan amortization calculator has a table which | | | | in the payment due column checks the last balance to |
| shows how the auto loan works month by month. This | | | | see if a payment adjustment is needed to zero out |
| gives an idea of the interest paid over the years and | | | | the balance. |
| the balance to be paid at any given time. After filling in | | | | The auto loan payment calculator which is another |
| the information related to the loan, the calculate button | | | | worksheet in the excel workbook is based on the auto |
| should be clicked and a table will appear in the text | | | | loan amount, annual interest rate, term of the loan and |
| box below. | | | | payment frequency. The spreadsheet contains the |
| Using the amortization table, payment of more money | | | | information about how to use the loan calculator as cell |
| than the vehicles' worth can be avoided. To achieve | | | | comments. Just entering the value in the white |
| this, some estimation on the vehicles value after | | | | background will suffice. The payment calculator also |
| certain number of months should be made. Then, | | | | helps to see how extra payments can help to pay off |
| amortization table can be used to see how much is | | | | the loan early thus reducing the interest amount. It |
| left on the loan. Amortization table is already filled in for | | | | contains yellow cells where the values are to be |
| a general car purchase. Generally auto loans run from | | | | entered and the spreadsheet is left unlocked giving |
| 48 to 72 months. The longer the term, the more the | | | | room to modify it further. |
| interest cost. | | | | The third worksheet comprising loan comparisons |
| Amortization table takes into account down payment | | | | creates graph by taking input from the loan payment. |
| and trade in or cash rebate. Auto loan payment | | | | This helps to know the different rates of interest, |
| calculator can be used to analyze different types of | | | | number of payments and the down payment affecting |
| loans by changing the loan amount, interest rate, term | | | | the monthly payment and total amount of interest. The |
| of the loan and the payment frequency. It is also | | | | auto manufacturer may offer incentives in the form of |
| flexible, in the sense, additional payment can be made | | | | cash rebate or low interest rate and the auto loan |
| to pay off the loan early and avoid paying so much | | | | calculator specifies the cash rebate and the annual |
| interest. Auto loan amortization calculator helps | | | | interest rate. |
| estimate the overall cost of purchasing a car, including | | | | |