EXCEL VEHICLE FINANCE CALCULATOR DOWNLOAD

You should consider your other monthly expenses before deciding to purchase a car. Keep in mind, the 20 / 4 / 10 rule is just a guideline. The PMT function is nested inside an ABS function to ensure that the loan payment is expressed as a positive value. The third argument calculates the amount to be financed by subtracting the 20% down payment in cell B9 from the price of the car in cell B3.The second parameter calculates the number of loan payments by multiplying the term in cell B7 by 12.The first parameter in the PMT function calculates the periodic interest rate by dividing the annual interest rate in cell B5 by 12. Use this car loan calculator to estimate your monthly payments and check amortization schedule, also see how factors like trade-in value and sales tax.The PMT function is nested inside an ABS function. Here is a spreadsheet that includes formulas to calculate relevant data points using the 20 / 4 / 10 rule.Ĭell B9 calculates the 20% down payment using this formula: =A3*20%. The 20 / 4 / 10 rule says when purchasing a car, you should provide a 20% down payment, take out a loan for a maximum of 4 years, and keep monthly car expenses at or below 10% of your monthly pre-tax income. Keep in mind the 10 - 15 percent rule is just a guideline.

With an annual salary of $75,000, your monthly car expenses - including loan payments, gas, insurance, and maintenance - should be between $625 - $937.50. Cell C7 uses 15% to determine the upper limit. The formula in cell B7, in the worksheet below, is =$B$3/12*B6.Īnnual income is divided by 12, then multiplied by 10%. This rule says that your monthly car expenses - including loan payments, gas, insurance, and maintenance - should be between 10% - 15% of your monthly income (before taxes). The 10 - 15 percent rule provides a general guideline for car expenses, based on your annual salary.

EXCEL VEHICLE FINANCE CALCULATOR DOWNLOAD

If you’d rather just download the spreadsheet and plug in your figures, the Excel file is available here: The 10 - 15 Percent Rule In this article, we’ll create a spreadsheet that calculates the maximum you should allocate to monthly car expenses, along with the suggested down payment if you decide to finance the purchase of a new vehicle. There are a couple of long-standing rules you can use as guidelines to ensure that you don’t overspend when purchasing a car.

How can people justify spending such a big portion of their income on luxury cars? I’m surrounded by BMW, Lexus, Mercedes, and Tesla owners. I live in a new subdivision and many of my neighbors own luxury cars. It seems like everyone is driving a new car these days.

Excel vehicle finance calculator