Mastering Car Loan Math: Calculating Interest and Principal Like a Pro!

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  • Опубліковано 21 вер 2024
  • In this video, I'm going to guide you through the ins and outs of car loan interest calculation. No more confusion or uncertainty! We'll focus on a practical example of a $20,000 car loan with a 3% interest rate over five years.
    Join me as I break down the process step by step, ensuring you understand how your monthly payment is divided between principal and interest. Discover the impact of a decreasing loan balance and how it affects your payment allocation.
    By the end of this video, you'll have the knowledge and confidence to calculate your car loan payments accurately. Subscribe now and empower yourself with the skills to take control of your car loan. Get ready to become a savvy borrower!
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КОМЕНТАРІ • 32

  • @kurtisbillerman1459
    @kurtisbillerman1459 25 днів тому +1

    Awesome! The exact video I was looking for.

  • @pavankumard5276
    @pavankumard5276 7 місяців тому +1

    Really good video to understand the math

  • @AllisonF-s3g
    @AllisonF-s3g 2 місяці тому +2

    I need to know how to calculate interest with weekly and bi-weekly payments to auto loans. Rule 72 if possible. Can you help?

  • @mannyboyaztlan5127
    @mannyboyaztlan5127 3 місяці тому +2

    But how about the per diem? On the financial bank contract for the vehicle loan?

  • @rm20235
    @rm20235 7 місяців тому

    Great video!!!

  • @jessiesineath7702
    @jessiesineath7702 4 місяці тому

    Yeah.....havent bought a new vehicle in many years and just got a 2023 Frontier a week ago. Interest rates are pretty crazy right now. I got 6.23% which I don't like but ive been hearing about a lot higher right now. I have a 5 year loan for the truck. Would love to pay it off at least a year faster. There seems to be a dance between trying to shave time off the loan and also saving money on interest. I was wanting to throw a extra 200 bucks a month on top of my payment and pay it off early and maybe save on paying so much interest as well.

    • @TravisSickle
      @TravisSickle  4 місяці тому +1

      paying that extra is a smart move.

    • @septemberanne4176
      @septemberanne4176 Місяць тому +1

      You probably know this, but if you are paying an extra $200 a month make sure you specify to your bank that you want it to go to the principle amount and not just towards another payment. If you just submit an extra 200 then it will be going towards next months interest and principle which is good, but if you have it go to principle only then it will knock off a lot more principle faster resulting in less interest being paid overall and saving you money. Plenty of YT vids on it explaining it better. You may have already known this, but maybe someone else will read it who didn't and may help them. :)

    • @jessiesineath7702
      @jessiesineath7702 Місяць тому

      @@septemberanne4176 yup thats what i do thanks!

    • @romievthedon
      @romievthedon Місяць тому

      @@septemberanne4176 What's crazy is some loan contracts penalize you for paying extra to knock down the principle. Definitely read the contracts thoroughly

  • @gerssonmartell
    @gerssonmartell 8 місяців тому

    thank you for the video. I operate a small business and have a few equipment loans (with different $ and %) I wanted to see which of the loans I should contribute more to so I can pay less interest in the long run. Any calculators out there that could help? Thanks!

    • @TravisSickle
      @TravisSickle  8 місяців тому +1

      There are but it’s a simple rule. Payoff the one with the highest interest rate first. That is mathematically the fastest.

  • @tuzkibao6064
    @tuzkibao6064 9 місяців тому +5

    How did you get the £359.37??

    • @gravitycore1
      @gravitycore1 Місяць тому

      No seriously it’s always the part they skip

  • @rickjames1834
    @rickjames1834 4 місяці тому

    Just purchased a 24 bronco due in part to desperation and the dealership financing me. My cs was 570 in December of last year and is now 614 due to some previous acct pay offs.
    My rate is 14% for 70 months??? What was i thinking!!! Any suggestions out there ?

  • @Bella-uf2oy
    @Bella-uf2oy 10 місяців тому

    I need help with interest because in my math project you need to calculate payment for simple interest and compound interest :C and then we will need to say which is better

    • @Bella-uf2oy
      @Bella-uf2oy 10 місяців тому

      it is like your problem but you need to slove it with simple and compound interest

    • @TravisSickle
      @TravisSickle  10 місяців тому

      Simple interest uses the original amount to calculate the interest, whereas, compound adds the interest to the next calculation.

  • @Nicktexas_
    @Nicktexas_ Місяць тому

    My interest fluctuates it could be less one payment and more the next why is that ?

    • @TravisSickle
      @TravisSickle  Місяць тому

      I would have to see your loan.

    • @romievthedon
      @romievthedon Місяць тому

      Sounds like you have a variable interest rate, but I don't understand why

  • @kierragaines
    @kierragaines 5 місяців тому +1

    Luv ❤

  • @darlyndevyl
    @darlyndevyl 7 місяців тому

    If I have a load on 26k with an interest of 14.85% what would be the monthly payment ? I’ve done the math and it doesn’t add to my payment

    • @youngla1475
      @youngla1475 6 місяців тому +1

      thats a very very high interest rate !! get quotes from different credits unions. dont finance with dealers they will like about the interest rate to make an extra buck. even if the union gave you a 8-9 interest rate they will bump it up to make a profit.!

    • @elgicko
      @elgicko 5 місяців тому

      Holy Sh1t! That's a high interest rate. I would say your monthly payment is TOO MUCH!! Look around to switch to lower interest rate!

    • @InterwebUser-ps7ju
      @InterwebUser-ps7ju 3 місяці тому

      When should I look at interest rate versus the APR? I’m trying to find the interest rate on my car loan and I can’t seem to find the interest rate in my documents. Only the APR, which is 8.76% on a $39,481 loan.

    • @Herolikepar
      @Herolikepar 3 місяці тому

      Let’s say you took a 60 month term, you’re looking at around $615 a month with 11k of that entire loan going towards interest. Yeah, that rate is atrocious..

  • @trxdude8171
    @trxdude8171 2 місяці тому

    How come this can’t be done with out a calculator

    • @romievthedon
      @romievthedon Місяць тому +1

      If you know how to do long division with 2 decimal places, you could do it without a calculator lmfaooo