How do you calculate your interest rate on a car loan?

Is there an easy way to calculate the interest rate on a car loan? I want to make sure that my current loan is still the best deal available, but I don’t remember what the interest rate was.

Answer
You can calculate the interest rate (or, more accurately, the APR) by using the following equation:
((interest rate on contract / 100) x loan principal) = interest rate
So, if your loan contract states that you have a loan for $10,000 with an interest rate of 6%, you would complete the equation like this: ((6 / 100) x 10,000) = 600
If you’d like to know the monthly interest rate, you can simply divide that number by the number of months in your loan. If your loan has a 48-month term, for example, you would divide 600 by 48 to get approximately 12.5.
If this seems too complicated, you can also contact your lender to learn more about your loan terms and interest rate. They should be able to help you understand how much you’ll be paying for your loan, as well as answer any questions that you might have.
If you do decide to find a new loan, why not refinance with the Jerry app? Just download the app to compare quotes from multiple lenders without the hassle of researching and sending documents to potential lenders. Jerry’s app instantly connects you with top companies to help you find a loan that best meets your needs.
Liz Jenson
Answered on Jan 05, 2022
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