Online Car Loan Calculator
Calculate your monthly payment for a new or used car and compare car loan offers from Armenian banks.
100 000 ֏200 000 000 ֏
%
Loan term5 years
1 month10 years
Calculation results
Monthly payment65 152 ֏
Loan amount
2 800 000 ֏Total interest
1 109 120 ֏Total repayment3 909 120 ֏
Find a car loan
Choose the best terms from top Armenian banks
Before applying for a car loan, it is important to understand in advance what the actual financial burden will be. The online calculator allows you to quickly estimate the monthly payment, compare terms from different banks, and choose the optimal option for your budget. Below are the key parameters you need to set for an accurate car loan calculation.
1. Select the vehicle type - New or used. Interest rates for pre-owned vehicles in Armenian banks are generally 1–3 percentage points higher.
2. Enter the vehicle cost - Specify the market price of the car or the price according to the dealership agreement. For used cars, use the price stated in the sales contract.
3. Specify the down payment - Your own funds that you contribute upfront. Most Armenian banks require a down payment ranging from 10% to 30%. The higher the down payment, the lower the interest rate and monthly payment.
4. Set the term and rate - If you don't know the rate, use the market average. Current car loan rates in Armenia can be found in the offers block below.
5. Account for CASCO - Most banks in Armenia require CASCO insurance policy for car loans. Include the insurance cost in the calculation for an accurate picture of the monthly burden.
A car loan calculator is an online tool for the preliminary calculation of car loan terms. Within seconds, it displays the monthly payment and overpayment without the need to visit a bank or negotiate with a manager. The AFM calculator works for all Armenian banks: enter the parameters and immediately see real car loan programs that match your conditions. This allows you to compare offers from several banks and choose the most favorable one even before submitting an application.
What You Can Calculate:
- Monthly payment for a given vehicle cost and down payment.
- Overpayment across different terms to choose the optimal one.
- Budget burden considering CASCO insurance.
- Difference in terms between new and used vehicles.
Armenian banks and credit organizations offer different terms depending on the type of vehicle being purchased. Before calculating a loan, it is important to understand the key differences.
| Parameter | New Car | Used Car |
|---|---|---|
| Interest Rate | Lower | Higher by 1–3% |
| Down Payment | From 10–20% | From 20–30% |
| Maximum Term | Up to 7 years | Up to 5 years |
| CASCO Requirement | Mandatory | Mandatory |
| Car Valuation | Not required | Required |
| Risks | Lower | Higher |
A significant portion of cars sold are imported from the UAE, South Korea, China, and Europe. When calculating the cost, consider customs duties and import fees, which can significantly increase the final price of the vehicle.
The interest rate on a car loan is determined individually for each borrower. Key factors include:
Vehicle Type - Rates are lower for new cars – the bank accepts liquid collateral with a predictable value. For used cars, the risks are higher, so the rate is higher.
Down Payment Amount - The more equity the borrower contributes, the lower the rate. A 30%+ down payment grants the right to better terms in most Armenian banks.
Loan Term - A shorter term reduces the total overpayment but increases the monthly payment. A long term does the opposite.
The Borrower's Credit History - A positive history and the absence of delinquencies lower the rate. The bank verifies data through the Credit Registry of the Central Bank of Armenia.
Insurance (CASCO) - Taking out comprehensive insurance reduces the bank's risk and often allows for a reduced rate.
Dealership Partner Bank - Buying from an official dealer that cooperates with a specific bank can provide special lending conditions.
In the context of car loans, this refers to insurance against theft and damage. In most Armenian banks, obtaining this insurance is a mandatory condition for the entire loan term. The car serves as collateral, and the bank protects its interests through insurance.
What insurance covers:
- Car theft
- Damage resulting from road accidents
- Natural disasters and illegal actions by third parties
How to account for insurance in the calculation
The cost of the policy in Armenia depends on the make, model, and age of the car, typically amounting to 2–5% of the vehicle's value per year.
If you cancel the insurance after receiving the loan, the bank has the right to increase the rate or demand early repayment – check the conditions in your contract.
Let's look at how the monthly payment and overpayment change depending on the down payment. Suppose you are buying a new car worth 8,000,000 AMD. The rate is 18% per annum, the term is 5 years, and the payment type is annuity.
Impact of the Down Payment
Car price 8,000,000 AMD, rate 18%, term 5 years
| Down Payment | Loan Amount | Monthly Payment | Overpayment |
|---|---|---|---|
| 10% (800,000 AMD) | 7,200,000 AMD | ~182,800 AMD | ~3,768,000 AMD |
| 20% (1,600,000 AMD) | 6,400,000 AMD | ~162,500 AMD | ~3,350,000 AMD |
| 30% (2,400,000 AMD) | 5,600,000 AMD | ~142,200 AMD | ~2,932,000 AMD |
Impact of the Loan Term
Car price 8,000,000 AMD, down payment 20%, rate 18%
| Term | Monthly Payment | Overpayment | Total Payment Amount |
|---|---|---|---|
| 3 years | ~231,000 AMD | ~1,916,000 AMD | ~8,316,000 AMD |
| 5 years | ~162,500 AMD | ~3,350,000 AMD | ~9,750,000 AMD |
| 7 years | ~130,000 AMD | ~4,520,000 AMD | ~10,920,000 AMD |
Reducing the loan term from 7 to 5 years saves about 1,170,000 AMD in overpayment but increases the monthly payment by approximately 32,500 AMD.
The loan term has a stronger impact on the overpayment than the down payment; it is the term that primarily forms the total cost of the loan.
The calculation is for informational purposes only. Actual terms depend on the bank, the borrower's credit history, commissions, and additional expenses such as insurance.
Applying for a car loan is a sequential process. Below are the steps to help you through it quickly and efficiently.
Step 1. Calculate Your Budget - Determine the car's cost, your available down payment, and a comfortable monthly payment. As a rule of thumb, the payment should not exceed 30–40% of your monthly income.
Step 2. Compare Bank Offers - Use the AFM calculator – enter your parameters and explore offers from all Armenian banks in one place.
Step 3. Submit an Application - Choose the bank with the most favorable terms and submit an application.
Step 4. Prepare the Documents - Standard package: Armenian passport, proof of income, employment contract, or bank statement. Some banks accept applications without proof of income.
Step 5. Obtain Insurance - Before receiving the loan, arrange an insurance policy with an insurance company accredited by the bank.
Step 6. Receive Your Vehicle - Once the loan is approved, the bank transfers the funds to the seller (dealership or individual), and you receive your car.
A car loan calculator is the starting point for any car buyer using credit. It allows you to understand the actual financial burden even before visiting a bank: not just the monthly payment, but also the cost of insurance (CASCO), which many forget to account for. My advice: always calculate two scenarios – one with the minimum down payment and one with a comfortable one. The difference in total overpayment is often more significant than it seems at first glance.
Author: Svetlana Khachatryan, Head of Product Cluster at AFM
How to calculate a car loan online?
Enter the car's cost, down payment, term, and rate in the calculator above. The result – monthly payment, overpayment, and APR – will appear instantly. Click "Compare Banks" to see real offers from Armenian banks based on your parameters.
What down payment is required for a car loan in Armenia?
Most Armenian banks require 10% to 30% of the car's value. For used cars, the down payment is usually higher – from 20-30%. The larger the down payment, the lower the rate and monthly payment.
Is insurance mandatory for a car loan?
In most Armenian banks, yes. Insurance is a mandatory condition since the vehicle serves as collateral for the loan. Refusing insurance may result in a higher rate or loan denial.
Can I get a car loan for a used car?
Yes. Most Armenian banks finance both new and used cars. Rates for pre-owned cars are higher, and the maximum age of the car is limited – usually up to 7-10 years at the time of loan maturity.
What are the car loan rates in Armenian banks?
Rates vary depending on the bank, the type of car, and the size of the down payment.
Is the calculator result the exact payment amount?
No, it is a preliminary calculation. The final terms with APR and requirements are determined by the bank after verifying the documents and the borrower's credit history.
Can I get a car loan without proof of income?
Some Armenian banks offer car loans without income verification, but the rate for such programs is usually higher. Check the specific bank's terms in the offers section.