Use the PMT Function to Calculate Car Loan Payments and Cost of Financing

The PMT function in Excel can be be used to determine the monthly payment for any fixed-rate loan. By providing information like car loan amount, interest rate, and months, we can calculate the exact monthly payment and then determine the total cost paid for a car.

[kendrickl]

My girl needed a bank statement and stub last week and I was worried about her loosing her not getting her car loan 😴 but everything good now only because of deelscafe good work 👍.

[randyhaimila]

This function was rather intimidating to me at first, but he explained it so well and put me at ease.

[suzifood]

I like how you teach your viewers to know how to do this. it's so clear and easy to understand thank you❤️💪

[phillipburrell]

Great instructions! This is exactly what I needed. Thanks for putting this out.

[peggystreetinfluencer]

Ralph, this was amazing and so easy to understand! Thank you!

[learner]

I always like your tutorial and your voice.

[adamadam]

Good Job, I solved my exam question quickly.

[elmengh]

awesome video and super easy to understand, I did just like you demonstrated then I copy column then added a few columns so that Im able to display several scenarios. thanks for posting!!

[aerynsunn]

Fantastic! You explained it so well. Thank you.

[elvergontemeto]

Brother what happened to the local tax they always include on every single vehiclr they sell

[sreevandana]

Thank you so much. I was looking for this 😊👍

[matthewbishop]

Why are you including downpayment amount in the amount financed for the formula on line 8?

[beverleyb]

Question for you @Six Minutes. Smarter. : I noticed in the Total Cost of Finance field that you did "=Total Paid-Cost of Car." This would have the finance cost also include the down payment instead of being the interest only, correct? Shouldn't the Cost of Finance be only interest since that is the amount you are forced to pay over what you borrowed? Am I thinking incorrectly on this? Thanks for your help!

[ronnijernigan]

Hello! QQ, can you do this formula while adding the number of days until the first payment and how that would affect the outcome

[amazingmage]

I am having an issue with this format.

It breaks my amortization schedule unless I set the interest to 0% totally confused here

[kelly]

Hello, Can you make a video of total cost of ownership of a car for 5yrs? Thanks

[jrjohnson]

What if there was no loan borrowed. Would I just use the price of the product?

[ceec]

How would we do this in reverse? For example I’m paying $300 a month, for 72months (6 years), with an interest rate of 5%. What’s the formula to find the total loan amount? (I keep seeing =PV, but I’m confused at how when I use PV, the outcome is a lesser number then if I multiply monthly payment (300) by Term (72 months). How is it more expensive at 0%? I’m so confused and need help Ralph.

[diem]

Very clear! This is awesome!!! Thank you! Much aloha! ❤️🙏🏽⭐️

[vbuen]

Awesome video but if you’re putting a down payment, the total cost of the car decreases, but you wrote the formula where the total cost increases. You need to enter a negative value to determine true price of the car. The way you entered it was taking on another $4500, which isn’t accurate. The total value borrowed would be $-4500 less and thus decreasing monthly payment and less interest owed.