hey guys...need help, how do you calculate a loan.

g222leav · 03-20-2004, 11:18 AM

i KNOW i should know this, and i probably learned it somewhere in high school (maybe college? but who can remember anyways).

well, i'm planning to buy a car in the future, and i just want to be able to double check the financing's number crunching...

so, let's make it simple...

a 10000 loan, at 35 months, is a monthly payment of $295.74

my problem is, i want to be able to calculate it, on the spot with my calculator, not a loan calculator (which i found numorous online...yes, i googled it already...)

thanx in advance...

attgig · 03-20-2004, 10:32 PM

well, at what %? that seems it's at around 3.5%...that right?

ramazank2 · 03-20-2004, 11:07 PM

A quick estimate can be done like this:

X= cost of car
y= interest rate
z= number of years

(X*Y*Z)/2 = total interest paid (TIP)

TIP+X = Total cost of car (TCC)

TCC/(Z*12)=monthly payment

Example
10000 cost of car
5% intrest rate
5 years financing

(10000*.05*5)/2=1250 (Total intrest paid)
1250+10000= 11250 (Total cost of car)
11250/(5*12)= 187.50 (monthly payments)

Online calculator says 189 so not bad for a quick and easy calculation.

ramazank2 · 03-20-2004, 11:17 PM

A quick estimate can be done like this:

X= cost of car
y= interest rate
z= number of years

(X*Y*Z)/2 = total interest paid (TIP)

TIP+X = Total cost of car (TCC)

TCC/(Z*12)=monthly payment

Example
10000 cost of car
5% intrest rate
5 years financing

(10000*.05*5)/2=1250 (Total intrest paid)
1250+10000= 11250 (Total cost of car)
11250/(5*12)= 187.50 (monthly payments)

Online calculator says 189 so not bad for a quick and easy calculation.

g222leav · 03-20-2004, 11:31 PM

sorry guys, for not providing enough info...

it was $10000 for 36 months @ 4%

ramazank, that's a great for estimate, however i'm looking for exact number crunching...i wanna verify if i'm being screwed if they try to finance me. but thanx!

civicdidex · 03-21-2004, 01:49 AM

know anyone with a financial calculator. they have a future value and present value feature that would figure out ur problem. i should have paid more attention in finance class...

gwilks98 · 03-21-2004, 01:28 PM

If you have a laptop you can take with you, it can all be done in excel if you have the function feature.
I'll put a sample on my *laugh* webpage.

Edit: Try accessing it
here

It's the one and only link on that page.

If you want to compute it manually, look at formula 7 here. Warning, though: it's a bit of legwork.

I believe the reason why this works out a few cents off was because the excel formula calculates continuesly whereas the manual formula calculates interest only once per period. Which, you may want to ask how they compute interest.

Jeffbx · 03-22-2004, 06:39 AM

You have a PDA? I'm sure there are financial calcultors you can download....

g222leav · 03-22-2004, 08:27 AM

Quote:

Originally posted by gwilks98
If you have a laptop you can take with you, it can all be done in excel if you have the function feature.
I'll put a sample on my *laugh* webpage.

Edit: Try accessing it
here

It's the one and only link on that page.

If you want to compute it manually, look at formula 7 here. Warning, though: it's a bit of legwork.

I believe the reason why this works out a few cents off was because the excel formula calculates continuesly whereas the manual formula calculates interest only once per period. Which, you may want to ask how they compute interest.

thanx, that helped a bunch, i know i'm gonna have a pocket pc by the time i buy a car, so i'll bring in your excel sheet, and that should work wonderfully!

thanx a bunch.

g222leav · 03-24-2004, 09:11 PM

Quote:

Originally posted by DarkFury

BTW... I had to put the lines in there to make it line up properly.

thanx buddy, and as always, you've well exceeded my expectations

03-20-2004, 11:18 AM	#1
g222leav Rear Admiral Lower Half Join Date: Dec 2000 Location: halfway between lost and found Posts: 2,948	hey guys...need help, how do you calculate a loan. i KNOW i should know this, and i probably learned it somewhere in high school (maybe college? but who can remember anyways). well, i'm planning to buy a car in the future, and i just want to be able to double check the financing's number crunching... so, let's make it simple... a 10000 loan, at 35 months, is a monthly payment of $295.74 my problem is, i want to be able to calculate it, on the spot with my calculator, not a loan calculator (which i found numorous online...yes, i googled it already...) thanx in advance... __________________ "it's more fun than it looks" - Red Foreman "trying is the first step in failing" - Homer J. Simpson "the world needs more dumb people...dumb people can't start wars" - mike lam

03-20-2004, 10:32 PM	#2
attgig Chief of Naval Operations Join Date: Jun 2000 Location: the burbs of baltimore Posts: 11,924	well, at what %? that seems it's at around 3.5%...that right? __________________

03-21-2004, 01:49 AM	#6
civicdidex Lieutenant Commander Join Date: Oct 2002 Location: south san fran Posts: 537	know anyone with a financial calculator. they have a future value and present value feature that would figure out ur problem. i should have paid more attention in finance class... __________________ fate grasps me and blurs my vision

03-21-2004, 01:28 PM	#7
gwilks98 Vice Admiral Join Date: Aug 2000 Location: StL Posts: 4,300	If you have a laptop you can take with you, it can all be done in excel if you have the function feature. I'll put a sample on my laugh webpage. Edit: Try accessing it here It's the one and only link on that page. If you want to compute it manually, look at formula 7 here. Warning, though: it's a bit of legwork. I believe the reason why this works out a few cents off was because the excel formula calculates continuesly whereas the manual formula calculates interest only once per period. Which, you may want to ask how they compute interest. __________________ "I know the pieces fit, cause I watched them fall away." "Cold silence has A tendancy to Atrophy any Sense of compassion." MJK Last edited by gwilks98 : 03-21-2004 at 02:07 PM.

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

03-20-2004, 11:07 PM	#3
ramazank2 Commander Join Date: Jun 2000 Location: Costa Mesa, CA Posts: 1,295	A quick estimate can be done like this: X= cost of car y= interest rate z= number of years (XYZ)/2 = total interest paid (TIP) TIP+X = Total cost of car (TCC) TCC/(Z12)=monthly payment Example 10000 cost of car 5% intrest rate 5 years financing (10000.055)/2=1250 (Total intrest paid) 1250+10000= 11250 (Total cost of car) 11250/(512)= 187.50 (monthly payments) Online calculator says 189 so not bad for a quick and easy calculation.

03-20-2004, 11:17 PM	#4
ramazank2 Commander Join Date: Jun 2000 Location: Costa Mesa, CA Posts: 1,295	A quick estimate can be done like this: X= cost of car y= interest rate z= number of years (XYZ)/2 = total interest paid (TIP) TIP+X = Total cost of car (TCC) TCC/(Z12)=monthly payment Example 10000 cost of car 5% intrest rate 5 years financing (10000.055)/2=1250 (Total intrest paid) 1250+10000= 11250 (Total cost of car) 11250/(512)= 187.50 (monthly payments) Online calculator says 189 so not bad for a quick and easy calculation.

03-20-2004, 11:31 PM	#5
g222leav Rear Admiral Lower Half Join Date: Dec 2000 Location: halfway between lost and found Posts: 2,948	sorry guys, for not providing enough info... it was $10000 for 36 months @ 4% ramazank, that's a great for estimate, however i'm looking for exact number crunching...i wanna verify if i'm being screwed if they try to finance me. but thanx!

03-22-2004, 06:39 AM	#8
Jeffbx Fleet Admiral Join Date: Mar 2000 Location: Michigan Posts: 9,390	You have a PDA? I'm sure there are financial calcultors you can download....

User Name
Password
Remember Me?