You can use this automobile or home equity loan calculator to compare the monthly and total cost for these two types of loans. The calculator provides the monthly payments for each option, the total cost of each loan, and overall savings, if any.
Calculator Definitions
The variables used in our online calculator are defined in detail below, including how to interpret the results.
Negotiated Price of Car ($)
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This is the purchase price of the car that you have negotiated with the dealership or private seller. This figure should not include rebates, trade-in allowances, or down payments.
Down Payments ($)
If you are lowering the amount you're going to finance by providing money up front in the form of rebates, trade-ins and / or cash, then enter that amount here.
Auto Loan Interest Rate (%)
This is the annual interest rate on the auto loan. This is not the APR, which takes into account other costs associated with the loan.
Auto Loan Fees ($)
If the car dealership or lender charges you any upfront fees for the car loan, then enter that amount here.
Auto Loan Term (Years)
The term of the loan is the number of years over which the loan will be paid. The most common car loan terms are 3, 4, and 5 years.
Home Equity Loan Interest Rate (%)
This is the annual interest rate on the home equity loan. This is not the APR, which takes into account other costs associated with the loan.
Home Equity Loan Fees ($)
Most home equity loans will charge you an upfront fee. This is where you enter any fees paid to the financial institution, bank, or lender.
Home Equity Loan Term (Years)
The term of a home equity loan may be considerably longer than that of a car loan. This is the term over which the loan is paid, stated in years.
Income Tax Rate (%)
Under certain conditions, you may be allowed to deduct the interest expense you are charged with a home equity loan from your state and / or federal income taxes.
Net Amount Financed ($)
The net amount financed is calculated by taking the negotiated price of the car and subtracting down payments.
Auto Loan Payment ($ / Month)
This is the monthly payment necessary to repay the car loan over its lifetime.
Home Equity Loan Payment ($ / Month)
This is the monthly payment necessary to repay a home equity loan over its lifetime.
Monthly Savings ($ / Month)
The monthly savings is the difference between the auto loan payment and the home equity loan payment each month.
Total Auto Loan Payments ($)
The total amount that is paid to the car dealership, or lending institution, over the life of the car loan.
Auto Loan Interest and Fees ($)
The total amount of interest charges over the term of the car loan. This is the cost of borrowing money from the lending institution, plus any fees charged.
Total Home Equity Loan Payments ($)
The total amount paid to the lending institution over the life of the home equity loan.
Home Equity Loan Interest and Fees ($)
The total amount of interest charges over the term of the home equity loan. This is the cost of borrowing money from the lending institution, plus any fees charged.
Tax Benefit of Home Equity Loan ($)
In many situations, you may be able to deduct the interest expense of a home equity loan from your state and / or federal income taxes. This is the potential tax benefit a home equity loan provides to you.
Total Cost of Home Equity Loan ($)
This is the total cost of the home equity loan, which includes interest expense, fees, and potential tax benefits.
Overall Home Equity Loan Savings ($)
A positive number here indicates the overall potential savings that a home equity loan might provide in financing the car's purchase versus a more traditional car loan.
Auto or Home Equity Loan Calculator
Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.
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