Plan Your Budget with Confidence
How Your Payment is Calculated
We determine your monthly payment using the standard amortization formula, which is the same method used by banks and financial institutions. This calculation spreads your payments evenly over the loan term.
The Formula:
The calculation is based on this mathematical formula:
M = P × [ r(1 + r)^n ] / [ (1 + r)^n – 1 ]
Where:
- M is your Monthly Payment.
- P is the Principal amount (the final loan amount after your down payment, trade-in, and taxes).
- r is the monthly interest rate (your annual rate divided by 12, then converted to a decimal. For example, 5% APR becomes 0.05 / 12).
- n is the total number of monthly payments (your loan term in months).
Our Process:
- We calculate your total loan amount (
P) by adding applicable taxes to the vehicle price and then subtracting your down payment and trade-in value. - We convert your annual interest rate into a monthly rate (
r). - We apply the formula using your loan term (
n) to find your fixed monthly payment (M).
This approach is fully compliant with lending regulations and ensures a clear, predictable repayment schedule.
Please note: This result is an estimate for your planning. Your final loan terms and payment may vary based on your creditworthiness and specific lender offers.