#DCU AUTO LOAN CALCULATOR HOW TO#

Determine how many monthly payments you will make over the term of the loan (the term in years multiplied by the number of payments due each year – usually 12).

The number of payments due each year (always 12 at DCU).

#DCU AUTO LOAN CALCULATOR HOW TO#

The monthly payments and finance charges will always be disclosed to you up front when you close on your loan but here's how to understand how these figures are calculated. You will see this breakdown by the headings on the loan activity portion of your DCU statement. Each month a portion of the loan payment you make will go towards reducing the principal amount borrowed, and a portion will go towards reducing the total finance fee. Basically, you're dividing the total number of payments into the amount you've borrowed plus interest. Usually you're agreeing to pay the money back according to an 'amortization' schedule.Īmortization is simply the reducing of a debt through periodic payments.

Total Finance Fee Due for the Billing Cycle = $1,322.58 x .099% x 31 ÷ 365 = $11.12 Closed End (non-revolving) Consumer and Mortgage LoansĬlosed end loans are loans for a specific dollar amount, that you agree to pay back within a certain period of time (usually years).

This is your Average Daily Balance.Īssume Average Daily Balance of 1,322.58 with a 9.9% Annual Percentage Rate in a 31-day billing cycle. Divide the total of the end-of-the-day balances by the number of days in the billing cycle. You can find the dates of the billing cycle on your monthly Visa Statement. Interest (Finance Charge) is a fee charged on every Visa account that is not paid in full by the payment due date or on every Visa account that has a cash advance.Īverage Daily Balance x Annual Percentage Rate (APR) x Number of Days in Billing Cycle ÷ 365Īdd up the end-of-the-day balances for every day of the billing cycle.

Dcu auto loan calculator