topic Re: How is Auto Interest calculated? in Auto Loans
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3560523#M45800
<BLOCKQUOTE><HR /><LI-USER uid="716455"></LI-USER> wrote:<BR /><P>Although online calculators are correct, I do my own calcuations.</P><P> </P><P>The formula that's been posted throughout this thread is correct. However, I use Excel (doesn't matter if on a Mac or PC) which handles all the math. Using your example:</P><P> </P><P>Price of: $5000</P><P>Down payment of: $500</P><P>Loan term of: 36 months</P><P>Interest Rate of: 3%</P><P> </P><P>The formula in Excel is =PMT(rate, nper, pv, (fv), (type))</P><P> </P><P>In the simplest terms without getting into technicalities:</P><P> </P><P>PMT is the monthly payment you're tyring to figure</P><P>rate is the Interest Rate in decimal form</P><P>nper is the Loan Term</P><P>pv is the TOTAL loan amount you are requesting</P><P>fv is not necessary for this example</P><P>type is not necessary for this example</P><P> </P><P>PMT = ?</P><P>rate = 0.03/12 (divide by 12 since the interest is compounded monthly - it's daily, but it's easier to work in months and because the loan term is in months)</P><P>nper = 36</P><P>pv = $4,500 ($5,000 - $500 = $4,500, this is the TOTAL loan you are requesting)</P><P> </P><P>So.... in the Excel cell, you enter</P><P> </P><P>=PMT(0.03/12, 36, $4,500)</P><P> </P><P>The returned number is -130.87 or (130.87) depending on your cell format.</P><P> </P><P>* You will receive a negative number. To avoid minute detail discussions and explanations, don't worry too much about the negative number since it depends on how you utilize or interpret it with other numbers. Just realize that it's the monthly payment (principal and interest). </P><P> </P><P>** This formula is the same to calculate mortgage payments and a sleuth of other financial questions as long as you understand the what you're doing <img id="smileyhappy" class="emoticon emoticon-smileyhappy" src="https://ficoforums.myfico.com/i/smilies/16x16_smiley-happy.gif" alt="Smiley Happy" title="Smiley Happy" /></P><HR /></BLOCKQUOTE><P>Yes!!!! I got something very similar to that! With those exact numbers! Ecxept im using a more realistic 12% for me which is probably what they're going to offer. </P><P> </P><P>I guess paying towards the principal is the best way to cut down interest tremendously withnsuch a high interest rate</P>Thu, 23 Oct 2014 17:00:02 GMTmikewillis72014-10-23T17:00:02ZHow is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3537751#M45545
<P><SPAN style="font-size: 12pt;">This may seem like a very noob question.. But i just need to make sure</SPAN></P><P><SPAN style="font-size: 12pt;">i understand this before i go to the dealership tomorrow...</SPAN></P><P> </P><P> </P><HR /><P> </P><P><SPAN style="font-size: 12pt;">For example sake...</SPAN></P><P><SPAN style="font-size: 12pt;">Lets just say your interest rate is 3% </SPAN></P><P> </P><P><SPAN style="font-size: 12pt;">Your monthly payments are $100.</SPAN></P><P> </P><P><SPAN style="font-size: 12pt;">How is the auto loan calculated?</SPAN></P><P><SPAN style="font-size: 12pt;">Is it 3% of every single monthly payment you make?</SPAN></P><P> </P><P> </P><P> </P><P> </P>Thu, 16 Oct 2014 17:48:58 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3537751#M45545mikewillis72014-10-16T17:48:58ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3538259#M45554
<P>in short, no.</P><P> </P><P>The formula to calculate the payment is as follows:</P><P><IMG alt="Simple Amortization Calculation Formula" height="68" src="http://www.vertex42.com/ExcelArticles/Images/Amortization-Calculation.gif" width="160" border="0" /></P><P>where</P><UL><LI><EM>A</EM> = payment Amount per period</LI><LI><EM>P</EM> = initial Principal (loan amount)</LI><LI><EM>r</EM> = interest rate per period</LI><LI><EM>n</EM> = total number of payments or periods</LI></UL><P>So let's say you finance 15,000 for 48 months at 2.5%. 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.</P><P> </P>Tue, 21 Oct 2014 01:02:18 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3538259#M45554coterotie2014-10-21T01:02:18ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3539241#M45566
<BLOCKQUOTE><HR /><LI-USER uid="644616"></LI-USER> wrote:<BR /><P>in short no.</P><P>The formula to calculate the payment is as follows:</P><P><IMG alt="Simple Amortization Calculation Formula" height="68" src="http://www.vertex42.com/ExcelArticles/Images/Amortization-Calculation.gif" width="160" border="0" /></P><P>where</P><UL><LI><EM>A</EM> = payment Amount per period</LI><LI><EM>P</EM> = initial Principal (loan amount)</LI><LI><EM>r</EM> = interest rate per period</LI><LI><EM>n</EM> = total number of payments or periods</LI></UL><P>So let's say you finance 15,000 for 48 months at 2.5%. 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. <SPAN style="color: #000080;"><STRONG>Some banks are using a 365 day year, but many still use 360.</STRONG></SPAN></P><P>**********</P><P>At least today most every lender uses simple interest (not sure about repo-buy-here-pay-dear lots) rather than the rule of 78's "rule of 78 - sum-of-the-digits method" which was pretty much universal not so long ago. To save you - that don't know - the interest was front loaded on these loans and cost the borrower dearly ANd most had a pre-payment charge if you paid the loan early.</P><P>Ahhhh, the good old days....</P><P>Edit: Link for those of you that might be interested in the rule of 78 <A href="http://www.bankrate.com/brm/news/auto/20010827a.asp" target="_blank">http://www.bankrate.com/brm/news/auto/20010827a.asp</A></P></BLOCKQUOTE>Tue, 21 Oct 2014 01:03:19 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3539241#M45566pipeguy2014-10-21T01:03:19ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3539329#M45575
<BLOCKQUOTE><HR /><LI-USER uid="644616"></LI-USER> wrote:<BR /><P>in short no.</P><P> </P><P>The formula to calculate the payment is as follows:</P><P><IMG alt="Simple Amortization Calculation Formula" height="68" src="http://www.vertex42.com/ExcelArticles/Images/Amortization-Calculation.gif" width="160" border="0" /></P><P>where</P><UL><LI><EM>A</EM> = payment Amount per period</LI><LI><EM>P</EM> = initial Principal (loan amount)</LI><LI><EM>r</EM> = interest rate per period</LI><LI><EM>n</EM> = total number of payments or periods</LI></UL><P>So let's say you finance 15,000 for 48 months at 2.5%. 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.</P><P> </P><BLOCKQUOTE><HR />@mikemsceo wrote:<BR /><P><SPAN style="font-size: 12pt;">This may seem like a very noob question.. But i just need to make sure</SPAN></P><P><SPAN style="font-size: 12pt;">i understand this before i go to the dealership tomorrow...</SPAN></P><P> </P><P> </P><HR /><P> </P><P><SPAN style="font-size: 12pt;">For example sake...</SPAN></P><P><SPAN style="font-size: 12pt;">Lets just say your interest rate is 3% </SPAN></P><P> </P><P><SPAN style="font-size: 12pt;">Your monthly payments are $100.</SPAN></P><P> </P><P><SPAN style="font-size: 12pt;">How is the auto loan calculated?</SPAN></P><P><SPAN style="font-size: 12pt;">Is it 3% of every single monthly payment you make?</SPAN></P><P> </P><P> </P><P> </P><P> </P><HR /></BLOCKQUOTE><P> </P><HR /></BLOCKQUOTE><P>Haha.. that is why i asked.. i never learned really how it is calculated. Thanks!</P>Tue, 21 Oct 2014 01:04:03 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3539329#M45575mikewillis72014-10-21T01:04:03ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3543313#M45618
<P>Stating a 3% APR is easier to understand than a daily 0.000082191% (365-days) or 0.000083333% (360-days) rate. This is, as a poster stated, because institutions use either 365 or 360 days to calculate interest.</P><P> </P><P>To make interest calculations easy, divide the APR by 12 (number of months) to find the monthly rate (remember to convert % to decimal first)... 0.03/12 = 0.0025</P><P> </P><P>1. Multiply the monthly rate with the loan balance to find the interest charge for that month... 0.0025 x $10,000 = $25.</P><P> </P><P>2. Subtract $25 from $100 to find the amount applied towards the loan balance... $100 - $25 = $75</P><P> </P><P>3. Subtract $75 from the loan balance to figure the new loan balance... $10,000 - $75 = $9,925</P><P> </P><P>Repeat steps 1, 2, and 3. The decrease in monthly interest charge directly equates to increases in principal payments until the loan is paid off.</P><P> </P><P> </P>Sat, 18 Oct 2014 14:18:38 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3543313#M45618Hoya082014-10-18T14:18:38ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3558833#M45789
<BLOCKQUOTE><HR /><LI-USER uid="716455"></LI-USER> wrote:<BR /><P>Stating a 3% APR is easier to understand than a daily 0.000082191% (365-days) or 0.000083333% (360-days) rate. This is, as a poster stated, because institutions use either 365 or 360 days to calculate interest.</P><P> </P><P>To make interest calculations easy, divide the APR by 12 (number of months) to find the monthly rate (remember to convert % to decimal first)... 0.03/12 = 0.0025</P><P> </P><P>1. Multiply the monthly rate with the loan balance to find the interest charge for that month... 0.0025 x $10,000 = $25.</P><P> </P><P>2. Subtract $25 from $100 to find the amount applied towards the loan balance... $100 - $25 = $75</P><P> </P><P>3. Subtract $75 from the loan balance to figure the new loan balance... $10,000 - $75 = $9,925</P><P> </P><P>Repeat steps 1, 2, and 3. The decrease in monthly interest charge directly equates to increases in principal payments until the loan is paid off.</P><P> </P><P> </P><HR /></BLOCKQUOTE><P><SPAN style="font-size: 12pt;">Thanks for that!!</SPAN></P><P> </P><P><SPAN style="font-size: 12pt;">I guess my next question is.... </SPAN></P><P><SPAN style="font-size: 12pt;">how is the monthly payment calculated???</SPAN></P><P> </P><P><SPAN style="font-size: 12pt;">Is it...</SPAN></P><HR /><P> </P><P><SPAN style="font-size: 12pt;">Car Cost $ 5000</SPAN></P><P><SPAN style="font-size: 12pt;">My down Payment: $ 500</SPAN></P><P> </P><P><SPAN style="font-size: 12pt;">Remaining Balance: $ 4500 /36 year term</SPAN></P><P> </P><P><SPAN style="font-size: 12pt;">$125 for 36 months???</SPAN></P><P> </P><P> </P>Thu, 23 Oct 2014 03:24:51 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3558833#M45789mikewillis72014-10-23T03:24:51ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3559761#M45794
<P>Well you could use the formula which would look something like this:</P><P> </P><P>P = 4,500</P><P>R= 3%</P><P>N = 36</P><P><IMG alt="Simple Amortization Calculation Formula" height="68" src="http://www.vertex42.com/ExcelArticles/Images/Amortization-Calculation.gif" width="160" border="0" /></P><P>Or you could use the handy dandy calulator available here:</P><P><A href="http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx" target="_blank">http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx</A></P><P> </P><P>Which gives you a payment of 130.87/month for 36 months.</P><P> </P><BLOCKQUOTE><HR />@mikemsceo wrote:<BR /><BLOCKQUOTE><HR /><LI-USER uid="716455"></LI-USER> wrote:<BR /><P>Stating a 3% APR is easier to understand than a daily 0.000082191% (365-days) or 0.000083333% (360-days) rate. This is, as a poster stated, because institutions use either 365 or 360 days to calculate interest.</P><P> </P><P>To make interest calculations easy, divide the APR by 12 (number of months) to find the monthly rate (remember to convert % to decimal first)... 0.03/12 = 0.0025</P><P> </P><P>1. Multiply the monthly rate with the loan balance to find the interest charge for that month... 0.0025 x $10,000 = $25.</P><P> </P><P>2. Subtract $25 from $100 to find the amount applied towards the loan balance... $100 - $25 = $75</P><P> </P><P>3. Subtract $75 from the loan balance to figure the new loan balance... $10,000 - $75 = $9,925</P><P> </P><P>Repeat steps 1, 2, and 3. The decrease in monthly interest charge directly equates to increases in principal payments until the loan is paid off.</P><P> </P><P> </P><HR /></BLOCKQUOTE><P><SPAN style="font-size: 12pt;">Thanks for that!!</SPAN></P><P> </P><P><SPAN style="font-size: 12pt;">I guess my next question is.... </SPAN></P><P><SPAN style="font-size: 12pt;">how is the monthly payment calculated???</SPAN></P><P> </P><P><SPAN style="font-size: 12pt;">Is it...</SPAN></P><HR /><P> </P><P><SPAN style="font-size: 12pt;">Car Cost $ 5000</SPAN></P><P><SPAN style="font-size: 12pt;">My down Payment: $ 500</SPAN></P><P> </P><P><SPAN style="font-size: 12pt;">Remaining Balance: $ 4500 /36 year term</SPAN></P><P> </P><P><SPAN style="font-size: 12pt;">$125 for 36 months???</SPAN></P><P> </P><P> </P><HR /></BLOCKQUOTE><P> </P>Thu, 23 Oct 2014 12:06:29 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3559761#M45794coterotie2014-10-23T12:06:29ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3560033#M45796
<P>Although online calculators are correct, I do my own calcuations.</P><P> </P><P>The formula that's been posted throughout this thread is correct. However, I use Excel (doesn't matter if on a Mac or PC) which handles all the math. Using your example:</P><P> </P><P>Price of: $5000</P><P>Down payment of: $500</P><P>Loan term of: 36 months</P><P>Interest Rate of: 3%</P><P> </P><P>The formula in Excel is =PMT(rate, nper, pv, (fv), (type))</P><P> </P><P>In the simplest terms without getting into technicalities:</P><P> </P><P>PMT is the monthly payment you're tyring to figure</P><P>rate is the Interest Rate in decimal form</P><P>nper is the Loan Term</P><P>pv is the TOTAL loan amount you are requesting</P><P>fv is not necessary for this example</P><P>type is not necessary for this example</P><P> </P><P>PMT = ?</P><P>rate = 0.03/12 (divide by 12 since the interest is compounded monthly - it's daily, but it's easier to work in months and because the loan term is in months)</P><P>nper = 36</P><P>pv = $4,500 ($5,000 - $500 = $4,500, this is the TOTAL loan you are requesting)</P><P> </P><P>So.... in the Excel cell, you enter</P><P> </P><P>=PMT(0.03/12, 36, $4,500)</P><P> </P><P>The returned number is -130.87 or (130.87) depending on your cell format.</P><P> </P><P>* You will receive a negative number. To avoid minute detail discussions and explanations, don't worry too much about the negative number since it depends on how you utilize or interpret it with other numbers. Just realize that it's the monthly payment (principal and interest). </P><P> </P><P>** This formula is the same to calculate mortgage payments and a sleuth of other financial questions as long as you understand the what you're doing <img id="smileyhappy" class="emoticon emoticon-smileyhappy" src="https://ficoforums.myfico.com/i/smilies/16x16_smiley-happy.gif" alt="Smiley Happy" title="Smiley Happy" /></P>Thu, 23 Oct 2014 14:30:13 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3560033#M45796Hoya082014-10-23T14:30:13ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3560479#M45799
<P>Hmmmm</P><P> </P><P>Is it compound interest or simply interest off the principal loan ?</P><P> </P><P>Inactually made a spreadsheet on excel with the formula you gave me</P><P> </P><P>If anybody needs I can upload it ...</P>Thu, 23 Oct 2014 16:52:07 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3560479#M45799mikewillis72014-10-23T16:52:07ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3560523#M45800
<BLOCKQUOTE><HR /><LI-USER uid="716455"></LI-USER> wrote:<BR /><P>Although online calculators are correct, I do my own calcuations.</P><P> </P><P>The formula that's been posted throughout this thread is correct. However, I use Excel (doesn't matter if on a Mac or PC) which handles all the math. Using your example:</P><P> </P><P>Price of: $5000</P><P>Down payment of: $500</P><P>Loan term of: 36 months</P><P>Interest Rate of: 3%</P><P> </P><P>The formula in Excel is =PMT(rate, nper, pv, (fv), (type))</P><P> </P><P>In the simplest terms without getting into technicalities:</P><P> </P><P>PMT is the monthly payment you're tyring to figure</P><P>rate is the Interest Rate in decimal form</P><P>nper is the Loan Term</P><P>pv is the TOTAL loan amount you are requesting</P><P>fv is not necessary for this example</P><P>type is not necessary for this example</P><P> </P><P>PMT = ?</P><P>rate = 0.03/12 (divide by 12 since the interest is compounded monthly - it's daily, but it's easier to work in months and because the loan term is in months)</P><P>nper = 36</P><P>pv = $4,500 ($5,000 - $500 = $4,500, this is the TOTAL loan you are requesting)</P><P> </P><P>So.... in the Excel cell, you enter</P><P> </P><P>=PMT(0.03/12, 36, $4,500)</P><P> </P><P>The returned number is -130.87 or (130.87) depending on your cell format.</P><P> </P><P>* You will receive a negative number. To avoid minute detail discussions and explanations, don't worry too much about the negative number since it depends on how you utilize or interpret it with other numbers. Just realize that it's the monthly payment (principal and interest). </P><P> </P><P>** This formula is the same to calculate mortgage payments and a sleuth of other financial questions as long as you understand the what you're doing <img id="smileyhappy" class="emoticon emoticon-smileyhappy" src="https://ficoforums.myfico.com/i/smilies/16x16_smiley-happy.gif" alt="Smiley Happy" title="Smiley Happy" /></P><HR /></BLOCKQUOTE><P>Yes!!!! I got something very similar to that! With those exact numbers! Ecxept im using a more realistic 12% for me which is probably what they're going to offer. </P><P> </P><P>I guess paying towards the principal is the best way to cut down interest tremendously withnsuch a high interest rate</P>Thu, 23 Oct 2014 17:00:02 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3560523#M45800mikewillis72014-10-23T17:00:02ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3561257#M45803
<BLOCKQUOTE><HR />@mikemsceo wrote:<BR /><P>Hmmmm</P><P> </P><P>Is it compound interest or simply interest off the principal loan ?</P><P> </P><P>Inactually made a spreadsheet on excel with the formula you gave me</P><P> </P><P>If anybody needs I can upload it ...</P><HR /></BLOCKQUOTE><P>It's simple interest. I meant to say computed instead of compounded.</P>Thu, 23 Oct 2014 20:09:00 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3561257#M45803Hoya082014-10-23T20:09:00ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3561633#M45804
<BLOCKQUOTE><HR /><LI-USER uid="716455"></LI-USER> wrote:<BR /><BLOCKQUOTE><HR />@mikemsceo wrote:<BR /><P>Hmmmm</P><P> </P><P>Is it compound interest or simply interest off the principal loan ?</P><P> </P><P>Inactually made a spreadsheet on excel with the formula you gave me</P><P> </P><P>If anybody needs I can upload it ...</P><HR /></BLOCKQUOTE><P>It's simple interest. I meant to say computed instead of compounded.</P><HR /></BLOCKQUOTE><P>Since it is simple interest</P><P> </P><P>Every months Payment will be off of the initial<STRONG> Cost of the Car ? </STRONG></P><P>Rather than the new balance...</P><P> </P><P>Is that right?</P><P> </P><P> </P>Thu, 23 Oct 2014 22:04:25 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3561633#M45804mikewillis72014-10-23T22:04:25ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3562291#M45809
<P>The payment is the same every month.</P><P> </P><P>It's the allocation of the payment toward the interest and toward the principal.</P><P>As you make more payments the principal portion increases and the interest portion decreases.</P><P> </P><P>In any given month the amount you pay over the minimum payment should go toward your principal balance so that the following month there will be less interest due and more paid toward the principal. If you do this every month (make on time payments and pay more than the minimum) you will save a bunch of interest. You can figure out how much interest by going to the link posted upthread earlier at bankrate.com <img id="smileyhappy" class="emoticon emoticon-smileyhappy" src="https://ficoforums.myfico.com/i/smilies/16x16_smiley-happy.gif" alt="Smiley Happy" title="Smiley Happy" /></P>Fri, 24 Oct 2014 01:02:36 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3562291#M45809StartingOver102014-10-24T01:02:36ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3562393#M45813
<P>Thanks guys been great help..</P><P> </P><P>I went on bankrate and also did the math on my own.. diference is a few bucks..Just arming myself for when i go to the dealer</P><P> </P><P>This one inquiry costed me 20 points <img id="smileysad" class="emoticon emoticon-smileysad" src="https://ficoforums.myfico.com/i/smilies/16x16_smiley-sad.gif" alt="Smiley Sad" title="Smiley Sad" /></P>Fri, 24 Oct 2014 01:26:36 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3562393#M45813mikewillis72014-10-24T01:26:36ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3562447#M45814
<P>It's simple interest as in: the interest charged is the CURRENT balance times the interest rate. </P><P> </P><P>Although the Annual Rate is 3%, the monthly rate is 0.25%. The monthly rate (0.25%) is the significant rate since payments are remitted monthly. In this situation, simple interest is the loan balance times 0.0025. If payments were made Annually, then the significant rate is the Annual Rate (3%). In this situation, simple interest is the loan balance times 0.03.</P><P> </P><P>This is where we start getting into the nuts and bolts of "the time value of money" , which is the basis of the equation presented earlier as well as the Excel formula, and it can get confusing. </P><P> </P><P>If you are interested in the nuts and bolts of "the time value of money", I recommend obtaining an Introduction to Finance book from your local library, or googling for youtube videos and other web resources to help explain it.</P><P> </P><P>To recap how auto loan interest is calculated:</P><P> </P><P>Price: $4,500</P><P>APR: 3%</P><P>Term: 36 months</P><P> </P><P>The Excel formula is =PMT(0.03/12, 36, $4,500)</P><P> </P><P>The Excel formula returns your monthly payment: $130.87</P><P> </P><P>The monthly payments are fixed and do not change. The monthly payment is a combination of interest and principal payments. As the interest payments decreases each month, the principal payments increases in the excat amount of the interest decrease.</P><P> </P><P>Thie interest payment for the 1st month is the current balance (aka principal) times the monthly interest rate: $4,500 x 0.0025 = $11.25 (simple interest)</P><P> </P><P>The amount applied to the loan balance (the principal) is: $130.87 - $11.25 = $119.62</P><P> </P><P>The new loan balance is $4,500 - $119.62 = $4,380.38</P><P> </P><P>The 2nd months interest charge is the adjusted loan balance times the monthly interest rate: $4,380.38 x 0.0025 = $10.95 (simple interest)</P><P> </P><P>The amount applied to the loan balance is: $130.87 - $10.95 = $119.91</P><P> </P><P>As you can see, the interest payment decreased from $11.25 to $10.95, a $0.30 difference. Since the monthly payment does not change, the $0.30 decrease in interest payments was added to the principal payment. Don't fret over the $0.01 difference as it will be made up in subsequent months due to rounding.</P><P> </P>Fri, 24 Oct 2014 13:26:02 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3562447#M45814Hoya082014-10-24T13:26:02ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3563331#M45819
<P>Excel also has an amortization table feature where you can see the portion of principal and interest each month. There are also numerous amortization calculators:</P><P> </P><P><A target="_blank" href="http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx">http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx</A></P><P> </P><P>Enter your loan data and scroll down to click on the amortization schedule. It will also show you how much you will save by making extra payments over the life of the loan.</P><P> </P><P>And now a plug for savings/investing. If you make the monthly deposits to YOUR savings account. You become the bank and get the BENEFIT of the interest.</P><P> </P><P>Understanding the power of the time value of money is the best lesson anyone can learn.</P><P> </P><P>Now with the power of computers and the internet anyone can do it. Back in the old days, we did all these calcs by hand. When I was taking tests as a Finance undergrad, we couldn't even use calculators. We did all the math by hand and had to be able to do a lot of it in our heads as the tests were all timed.</P><P> </P><BLOCKQUOTE><HR /><LI-USER uid="716455"></LI-USER> wrote:<BR /><P>It's simple interest as in: the interest charged is the CURRENT balance times the interest rate. </P><P> </P><P>Although the Annual Rate is 3%, the monthly rate is 0.25%. The monthly rate (0.25%) is the significant rate since payments are remitted monthly. In this situation, simple interest is the loan balance times 0.0025. If payments were made Annually, then the significant rate is the Annual Rate (3%). In this situation, simple interest is the loan balance times 0.03.</P><P> </P><P>This is where we start getting into the nuts and bolts of "the present value of money" , which is the basis of the equation presented earlier as well as the Excel formula, and it can get confusing. </P><P> </P><P>If you are interested in the nuts and bolts of "the present value of money", I recommend obtaining an Introduction to Finance book from your local library, or googling for youtube videos and other web resources to help explain it.</P><P> </P><P>To recap how auto loan interest is calculated:</P><P> </P><P>Price: $4,500</P><P>APR: 3%</P><P>Term: 36 months</P><P> </P><P>Your monthly payments are $130.87</P><P> </P><P>The monthly payments are fixed and do not change. The monthly payment is a combination of interest and principal payments. As the interest payments decreases each month, the principal payments increases in the excat amount of the interest decrease.</P><P> </P><P>Thie interest payment for the 1st month is the current balance (aka principal) times the monthly interest rate: $4,500 x 0.0025 = $11.25 (simple interest)</P><P> </P><P>The amount applied to the loan balance (the principal) is: $130.87 - $11.25 = $119.62</P><P> </P><P>The new loan balance is $4,500 - $119.62 = $4,380.38</P><P> </P><P>The 2nd months interest charge is the adjusted loan balance times the monthly interest rate: $4,380.38 x 0.0025 = $10.95 (simple interest)</P><P> </P><P>The amount applied to the loan balance is: $130.87 - $10.95 = $119.91</P><P> </P><P>As you can see, the interest payment decreased from $11.25 to $10.95, a $0.30 difference. Since the monthly payment does not change, the $0.30 decrease in interest payments was added to the principal payment. Don't fret over the $0.01 difference as it will be made up in subsequent months due to rounding.</P><P> </P><HR /></BLOCKQUOTE><P> </P>Fri, 24 Oct 2014 12:27:53 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3563331#M45819coterotie2014-10-24T12:27:53ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3563443#M45822
<BLOCKQUOTE><HR /><LI-USER uid="644616"></LI-USER> wrote:<BR /><P>Excel also has an amortization table feature where you can see the portion of principal and interest each month. There are also numerous amortization calculators:</P><P> </P><P><A target="_blank" href="http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx">http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx</A></P><P> </P><P>Enter your loan data and scroll down to click on the amortization schedule. It will also show you how much you will save by making extra payments over the life of the loan.</P><P> </P><P>And now a plug for savings/investing. If you make the monthly deposits to YOUR savings account. You become the bank and get the BENEFIT of the interest.</P><P> </P><P>Understanding the power of the time value of money is the best lesson anyone can learn.</P><P> </P><P>Now with the power of computers and the internet anyone can do it. Back in the old days, we did all these calcs by hand. When I was taking tests as a Finance undergrad, we couldn't even use calculators. We did all the math by hand and had to be able to do a lot of it in our heads as the tests were all timed.</P><P> </P><HR /></BLOCKQUOTE><P>I completely agree that everyone should attempt to learn the power of the time value of money. Learning the time value of money has been one of the most beneficial courses I've taken. And thank goodness for spreadsheets and financial calculators! <img id="smileyhappy" class="emoticon emoticon-smileyhappy" src="https://ficoforums.myfico.com/i/smilies/16x16_smiley-happy.gif" alt="Smiley Happy" title="Smiley Happy" /></P>Fri, 24 Oct 2014 13:22:45 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3563443#M45822Hoya082014-10-24T13:22:45ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3563471#M45823
<P>An amortization table can be created to see how much of the monthly payments are applied towards interest charges.</P><P> </P><P>I tend to avoid amortization tables for auto loans. Instead, I use them for tracking mortgage payments.</P><P> </P><P>I assume the question about monthly interest charges on an auto loan is to determine how much interest you will pay over the life of the loan. This is easy to figure out without an amortization table. *[see note below]</P><P> </P><P>Loan: $4,500</P><P>APR: 3%</P><P>Term: 36 months</P><P> </P><P>With the Excel formula =PMT(0.03/12, 36, $4,500)</P><P> </P><P>The Excel formula returns a $130.87 monthly payment.</P><P> </P><P>Since the payments are fixed for 36 months, your total payment is: monthly payment times term -> $130.87 * 36 = $4,711.16</P><P> </P><P>The difference between the total payments and the original loan balance is the total interest paid: $4,711.16 - $4,500 = $211.16</P><P> </P><P>Keep in mind the $211.16 in interest is the MOST interest you will pay (assuming you do not re-finance). In other words, you're paying about $70 per year in interest, or $6 per month to borrow $4,500.</P><P> </P><P>* [note] Any additional payments to the principal will decrease the total interest paid. However, including additional payments ontop of the monthly payment requires an amortization table or further knowledge of the time value of money to manipulate the Excel formula to determine the total interest paid.</P>Fri, 24 Oct 2014 13:40:40 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3563471#M45823Hoya082014-10-24T13:40:40ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3563685#M45824
<P><IMG height="1237" width="928" src="http://i.imgur.com/1MHfkwS.jpg" alt="" border="0" />The posts have helped a lot. </P><P> </P><P>Here is a pic of the calculations I got for a car @ $5000 and an apr of 30% ( I like to calculate the highest possible )</P><P> </P><P>Monthly fpr 36 months at 170 assuming I never pay anything towards the principal. ...</P><P> </P><P> </P><P> </P><P><IMG height="1237" width="928" src="http://i.imgur.com/TP4YHlK.jpg" alt="" border="0" /></P><P> </P><P> </P><P> </P>Fri, 24 Oct 2014 15:18:40 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3563685#M45824mikewillis72014-10-24T15:18:40ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3564207#M45825
<P>Unfortunately, the minimum payment for $5000 @ 30% for 36 months is $212.26. Lenders will not allow you to make less than minimum payments without incurring a fee.</P><P> </P><P>In your scenario of only making $170 instead of $212.26, the loan will be paid off in 54 months.</P>Fri, 24 Oct 2014 17:55:39 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3564207#M45825Hoya082014-10-24T17:55:39ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3564395#M45826
<P>Yes I actually did the math wrong and noticed after I sent it. I'm on my tablet and would be too difficult to correct haha. Yes just plugged the those numbers in and thats exactly what I got</P>Fri, 24 Oct 2014 19:17:14 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3564395#M45826mikewillis72014-10-24T19:17:14ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3577085#M45928
<P>Went to the dealer today</P><P> </P><P>quick question. </P><P>How can I figure the total cost I am paying for the phone</P><P> </P><P>do I just add the total amount of interest to the cost of the car. </P><P> </P><P>Or</P><P>do do I add the total of all the monthly payments to the total cost of the interest ?</P>Tue, 28 Oct 2014 23:26:15 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3577085#M45928mikewillis72014-10-28T23:26:15ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3577463#M45940
<P>The cost of the vehicle is the contract price you negotiate plus what ever fees you agree to (and are required) such as tax, tags, title, gap, warranty etc.</P><P> </P><P>I think what you are trying to do is figure out the total cost of the vehicle + the cost of the money borrowed. The cost of the vehicle is separate from the cost of the money borrowed. Don't confuse the cost of the vehicle with the cost of the money to purchase the vehicle. Those are two separate negotiations.</P><P> </P><P>Money always costs something if you borrow it. And if you use your savings and pay in cash, you have an opportunity cost loss associated with using your savings (lost opportunity to use that money on an investment that may return more than the cost of interest for borrowing the same amount). You have to figure out for yourself which is the best use of your money.</P><P> </P><P>If you go to bankrate.com and pull up the auto financing calculator and look at the amortization schedule for the amount you finance - you will see a total at the bottom of the interest column of all the interest paid during the life of the loan. There is an interest column, principal column and total column. Beware: the amortization schedule assumes that the payment will be made on time each time (due date) during the loan. So if you pay early you will pay less interest and if you pay late you will pay more.</P><P> </P><P> </P>Wed, 29 Oct 2014 01:26:11 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3577463#M45940StartingOver102014-10-29T01:26:11ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3628175#M46538
<P>can anybody figure out for me simple daily interest 10.54 APR from 7-31-07 to 8-22-07 on $20539.51? i'm so confused. i was charged $207.59 interest and $157.41 went to principal on my first $375 payment. it doesn't sound right to me and does not match any amorization schedule i look at. they told me to take 20531.51 x10.54% divided by number of days in that year. can anyone confirm i was charged correctly?</P>Thu, 13 Nov 2014 18:34:36 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3628175#M46538kittywitty2014-11-13T18:34:36ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3628709#M46542
<P>What type of loan did you take out? What is in the fine print?</P><P> </P><P>On traditional loans, the first year's total annual interest paid is always less than the Principal * APR: $20,539.51 * 0.1054 = $2,164.86.</P><P> </P><P>The reason total annual interest is less than the number above is because with each monthly payment, the principal (loan balance) is reduced. As the monthly loan balance decreases, interest paid for subsequent months are less than prior months.</P><P> </P><P>At 10.54% APR on a Princpal of $20,539.51, the total interest paid for the first 12-months is around $2,048.66.</P><P> </P><P>Also, when were the funds dispersed to your account and when is the monthly due date? Base on the numbers you provided, there were 35 days of interest accrual (on a 365 calendar year).</P>Thu, 13 Nov 2014 22:02:16 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3628709#M46542Hoya082014-11-13T22:02:16ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3629545#M46544
<P>i bought the car 7/23/07 but the detailed payment history they sent me says loan started 7/31/07 and first payment was due 8/22/07. then it also says -63.70 due on 8//22/07 for deferred expense and commitment fee assement +$125.00 paid 8-22-07. i was charged $198.42 by the dealer and was to be paid on my behalf so i am wondering why it shows the way it does. wondering where my $198.42 went. also trying to match up the numbers as my first statements came with a due date of 9/1 or 9/2 and they called after accepting payment and said my due date had to be changed to 8/22 b/c that it was my contract says and it does sayspayments due 8/22. i think the dealer & bank ripped me off in some way. i am really mad b/c i paid enough in nov 2013 for the loan to be paid but they posted my payment 4 days later causing another statement to generate causing me to be 90 days late b/c an extra payment was not in my budget. no sooner i pay it off someone totals the car and now i am unable to buy another one at a reasonable price. so i am going to try to dispute the loan being paid in nov and get them to remove the two 90 days late & refund the payment they collected in feb and if thats fails then i am going to try to prove they changed my terms after accepting payment. i feel really ripped off by this bank and so far they are very uncooperative. dealer told me the interest was high b/c it was a better loan then most but i'm not really sure my loan was any better in which case i should not of even had to pay 10.54% my husband had good credit when we bought the car and my credit wasn't bad. i think considering they moved my due date up and my maturity date up i think it is very unreasonable to then charge me $10 to take a phone payment and then not post in in their books 4 days later. the check cleared my bank before the next statement date and i told them when they took it i wanted to pay off the loan if the payment was enough. i asked for the pay off and she told me she didn't know. i paid some payments 2 at a time so paid off in less then 75 payments and i think somehow that messed up my credit reporting. experian shows the last actual payment was paid on nov. 30 but no actual payments are shown only payments due and date received. it's all just so weriod. just trying to educate myself before i start making complaints to BBB and then consumer financial protection bureau. i want the two 90 days and one 60 day removed or i want the entire account deleted.</P>Fri, 14 Nov 2014 00:17:03 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3629545#M46544kittywitty2014-11-14T00:17:03ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3631277#M46565
<P>Unfortunately charges and fees assessed by dealers usualy aren't applied to any loan payments unless it's explicitly stated in the purchase documents. I suspect the charges the dealer accepted "on your behalf" may have been for document & titles fees or loan origination fees.</P><P> </P><P>I recommend looking at the Truth In Lending document provided by the financial institution. It will provide the numbers used to calculate your payments. If the document says your due date is the 22nd of each month, then your first payment was technically late regardless of the "statement" due date. As a result, you may have been assessed late fees, which may explain why total charges were $207.59. However, you may have grounds to dispute this error.</P><P> </P><P>In addition, as furstrating as it may be, fees for phone payments are not unheard of.</P>Fri, 14 Nov 2014 14:39:21 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3631277#M46565Hoya082014-11-14T14:39:21ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3634441#M46602
<P>i had 10 grace period so no late fee should of been charged. my 1st statement came with a due date that was different then what my contract said and was paid according to the due date on that statement. then terms were changed. so in reality i paid it a day or two early but when they changed the terms it made that payment 5 days late. just another way i was ripped off & manulipated into terrible terms. i also got an email on 9-25-12 that a payment was cancelled through their bill pay agreement as the checking account i had on file was closed but no payment was ever made from the closed account. after that is when credit reporting changed in the way late's were determined. seems as if no payment was actually cancelled but it changed which payment i was paying next maybe. idk they say my terms were 75 payments not months. credit reporting says 75 months and they deleted that off then added it back so seems fishy to me. seems as if i paid 2 payments at once it counted as 1 payment creating late's that may not match my statments. seems fishy that no actual payments are reported and the last payment they collected in feb never reported as being schdeuled or paid. not sure how they can determine reporting is accurate when it is not. 1st 4 payments not even reported to transunion at all so no credit for those payments even being paid. i so want to win this dispute b/c they are such a shady lender and i don't think it is right they get away with it.</P>Sat, 15 Nov 2014 13:27:25 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3634441#M46602kittywitty2014-11-15T13:27:25ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3637509#M46622
<P>First off the 10% rate in 2007 wasn't a terrible rate at that time. Treasuries were yielding ~5% at the time, so prime auto credits should have been in the 8.5% range. Secondly, you won't get much traction trying to get the lates removed by being aggressive. You need to plead with them for a goodwill adjustment. </P><P>Thirdly, loan contracts never state months always state payments. WHy? Because you are repaying the loan in payments, whether they be weekly monthly or annualy scheduled it is the number of payments over the time alotted. Thus the interest is calculated properly. What if you miss a "monthly" payment, how would this be stated if the loan were for 75 months and not 75 payments? See how that makes it more difficult.</P><P>It would have been easy to get the late payments reversed back then, tough now.</P><P>The time to get this straight was back in 2007 unfortunately.</P><P> </P><BLOCKQUOTE><HR /><LI-USER uid="808442"></LI-USER> wrote:<BR /><P>i had 10 grace period so no late fee should of been charged. my 1st statement came with a due date that was different then what my contract said and was paid according to the due date on that statement. then terms were changed. so in reality i paid it a day or two early but when they changed the terms it made that payment 5 days late. just another way i was ripped off & manulipated into terrible terms. i also got an email on 9-25-12 that a payment was cancelled through their bill pay agreement as the checking account i had on file was closed but no payment was ever made from the closed account. after that is when credit reporting changed in the way late's were determined. seems as if no payment was actually cancelled but it changed which payment i was paying next maybe. idk they say my terms were 75 payments not months. credit reporting says 75 months and they deleted that off then added it back so seems fishy to me. seems as if i paid 2 payments at once it counted as 1 payment creating late's that may not match my statments. seems fishy that no actual payments are reported and the last payment they collected in feb never reported as being schdeuled or paid. not sure how they can determine reporting is accurate when it is not. 1st 4 payments not even reported to transunion at all so no credit for those payments even being paid. i so want to win this dispute b/c they are such a shady lender and i don't think it is right they get away with it.</P><HR /></BLOCKQUOTE><P> </P>Sun, 16 Nov 2014 15:09:45 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/3637509#M46622coterotie2014-11-16T15:09:45ZRe: How is Auto Interest calculated?
https://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/4373543#M60623
<P>You can also ask for the loan interest concessions as it is included into the salary amount if you into job. For me it comes under the<FONT color="#0000FF"> (Mod Cut-Im sorry such links are taboo on myFico)</FONT></P>Tue, 15 Dec 2015 17:37:10 GMThttps://ficoforums.myfico.com/t5/Auto-Loans/How-is-Auto-Interest-calculated/m-p/4373543#M60623JamesBennett2015-12-15T17:37:10Z