Determining what your monthly car payments will be before you purchase a car, will allow you to carefully gauge whether you can afford to purchase the vehicle. It will also help you plan your monthly budget, so you know how much money will need to be set aside for this expense. Analyzing what your car payments will be based on factors such as the interest rate, loan term and loan amount can easily be done in Excel. You can analyze various scenarios by changing one variable and see how it affects the monthly payment.
