## Car loan basics

### Wolfram|Alpha can perform useful computations related to simple automobile loans.

The simplest loan calculation requires only a total loan amount, a loan period and the annual percentage rate of interest on the loan. From these variables, Wolfram|Alpha can compute monthly payments, total interest charges and breakdowns of payments against the principal loan amount and interest over the life of the loan.

Loan computations can also incorporate down payments or balloon payments, which represent a balance due at the end of the loan term. By adjusting loan amounts and interest rates as well as different down payment amounts, you can determine the car loan you might be able to afford, and calculate recurring costs over time.