There are times when it is important to know how to calculate your auto loan‘s remaining principle, such as when you are ready to sell your present car in order to purchase another one. You will need to know just what the payoff will be before you enter into an agreement with a buyer for your car. You do not want to get caught owing more than you have collected from the buyer. Here is how to calculate your auto loan’s remaining principle.
Ask for an amortization schedule from your lender that will show the outstanding balance that will occur following each scheduled payment.
There are online calculators that you can use. You will then enter the beginning loan amount with the terms, car loan interest rate and how many payments that you have made. After clicking “Calculate” you can find the amount of the principal.
Ask your lender how they compound the interest rate. After discovering the annual interest rate you will want to divide that by 1200.
With the monthly interest, you will multiply by the principal and deduct this from your monthly payment. This will let you know the amount of each payment that went to the principal.
Subtract this amount from the beginning loan amount. You will find that with each payment, the amount that went to the principal has increased while the interest amount has decreased.
Add up any extra payments you have made and subtract that from the principal.