- 1). Find out all of the terms and conditions of your automobile loan. For example, if you are purchasing a car in the amount of $20,000 with an interest rate of 6 percent for 6 years, your payment can be calculated using a financial calculator.
- 2). Enter $20,000 into the financial calculator and press the PV button. Now enter six, which represent the interest rate, and divide by 12 to get a result of .05. Hit the i% key. Put a six, which represents the term of the loan, in the display of the calculator and multiply by 12 to get 72 payments. Now press the "N" key. Hit the compute key and then the PMT key. The payment amount for your automobile loan should be $331.46.
- 3). Check your answer with an automobile loan calculator. This is an online tool used for reviewing a variety of financing sequences for cars. Enter the loan amount, term and the interest rate and hit the calculate key. The monthly payment will be calculated. Both payments should be the same.
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