Loan Calculator

Loan Calculator
Loan Data:
Purchase Price:
Down Payment:

Annual Interest Rate:

 %
Term: Years
Results:
Loan Principle:

Total Payments:

Monthly Payment:

Your Task

Experiment with different values for the interest rate and term to see how it affects the monthly payment.  You received $1000 as the trade-in value of your old beater from the dealer and you used it for the down payment.  

Try to keep your monthly loan payment between the recommended 8% and 11% of your gross income.  Remember, you make $26,500/year.   At 8% , you would have $2120/year to budget for a car loan, or $176/month.  At 11%, you would have $2915, or $242/month.  Can you really afford that new car?

Calculate your loan payment for each car.  

To find your monthly loan payment:

  1. Enter the Price of the car.
  2. Enter the Down Payment.
  3. Enter the Annual Interest Rate percentage.
  4. Enter the Term, in years.
  5. Click the Calculate Button.
Print this page showing the results for each car.  Put these 3 pages in your folder with the rest of your WebQuest documentation.

Determine what percentage the loan payment is of your gross income.   Write this number in the space below. Add the monthly payment shown on the calculator to the Decision Matrix. ( "Monthly Payment" row in the appropriate column.)

My monthly payment of ____________ is _______%  of my  income.  (This may or may not fall within the recommended guidelines of 8 - 11%.)