Formula
Fees increase the note, and the down payment reduces it:
financed = price − down payment + fees
The payment is the fixed amortizing payment. Sales tax belongs on the car loan page, which does not have a fee field.
Assumptions
- Fees are financed, not paid in cash.
- The rate is fixed and compounded monthly.
- Sales tax is not added on this page.
Worked example
A $26,000 price, $2,000 down, and $800 in fees, at 7.2% for 72 months, has a payment of $425.20.
Input definitions
- Fees added
- Charges included in the amount financed, such as a documentation fee you choose to roll in.
- Amount financed
- Price minus the down payment, plus those fees.
Limitations
This is an estimate, not a loan offer, a lease quote, or tax advice. A lender can add fees, and sales-tax rules differ by place. The currency control changes the symbol only.
Questions
How is this different from the car loan page?
That page adds a sales-tax percent to the price. This page adds a fee amount and leaves tax out.
Can the fee be zero?
Yes. The note is then the price minus the down payment.