How is Auto Interest calculated?

Credit and mortgage advice Forums Financial and Innovatemarkets How is Auto Interest calculated?

This topic contains 0 replies, has 1 voice, and was last updated by  jesuslewis 1 year, 6 months ago.



  • Author
    Posts
  • #554063

    jesuslewis
    Participant

    This may seem like a very noob question.. But i just need to make sure
    i understand this before i go to the dealership tomorrow..
    Your payment is $328.71. So (15,000 * .025)/360 * 31 = 32.29. So of your first payment 295.71 goes to principal and 32.29 goest to interest leaving you a principal balance of $14,704.29. Next month the calculation is ($14,704.29 *.025)/360 *30 = 30.64. So 298.08 goes to principal and so on for a total of 48 payments. You can download from multiple sites an amortization schedule or use excel. By the way, the 360 is a holdover from an earlier era when these calcs were done by hand. Some banks are using a 365 day year, but many still use 360

    For more detailsAnimated Corporate Video



You must be logged in to reply to this topic.

Register New Account
Reset Password