Car Payment Calculator Formula

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Shared by: rockcartwright
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Uniroyal Savings Calculator Each savings tip within the calculator has monetary savings value associated with it: Saving Tips Keeping tires inflated Tune engine Keep wheels aligned Shop around for gas Use cruise control Replace air filter Estimated Savings per Tip $0.09 per gallon $0.12 per gallon $0.15 per gallon $0.16 per gallon $0.17 per gallon $0.29 per gallon Percentage Ratio 3.10% 4.14% 5.17% 5.52% 5.86% 10.00% Percentage ratio formula In order to allow variables in gas cost per gallon, each tip was assigned a percentage ratio calculated as follows: Example – Tune Engine Tip $0.12 estimated savings / ($2.90 cost per gallon / 100) = 4.14% Example – All Savings Tips $0.98 estimated savings / ($2.90 cost per gallon / 100) = 33.79% Research information These estimated savings amounts are based on independent research using the following sources and information: Sources: U.S. Department of Energy, Federal Trade Commission, N.C. Department of Commerce, Car Care Council, GasBuddy.com and GasPriceWatch.com Estimates based on 2006 Toyota Camry with 18.5 gallon gas tank and gas mileage 24 city/34 highway. Savings based on average cost of unleaded gasoline $2.90 per gallon (4/24/06) and 15,000 miles driven annually. How the calculator works Within the calculator, the consumer will either select all savings tips or select only the tips that are applicable for them. The user will need to input 3 fields of information including: • • • Number of miles your drive per day Vehicle’s MPG Average gas cost per gallon If the consumer is unsure what their vehicle MPG would be, there is a “Don’t know?” link for information. Once the user clicks, they will be sent to the following independent website for information on their car year, make, and model. http://www.fueleconomy.gov/feg/byclass.htm www.uniroyal.com The total amount of possible savings based on the summation of percentage ratios is 33.79%. For example calculation, the formulas below use the base cost of a gallon of gasoline of $2.90. If the user chooses “Select all tips”, the following formula will be used to calculate total daily savings: Number miles driven per day / Vehicle’s MPG x Average cost per gallon / 100 x 33.79 (total percentage ratio) = Total daily savings For example purposes, use the following data for “Select all tips”: Number of miles you drive per day = 60 miles Vehicle’s MPG = 24 miles per gallon Average gas cost per gallon = $2.90 Example estimated savings calculator formula: Number miles driven per day / Vehicle’s MPG 60/24 = 2.5 x Average cost per gallon 2.5 x $2.90 = $7.25 / 100 $7.25/100 = 0.0725 x 33.79 (total percentage ratio) 0.0725 x 33.79 = $2.45 $2.45 is the estimated daily savings for implementing all of the tips. To calculate estimated annual savings, multiply the number of days per year: $2.45 x 365 days = $894.17 www.uniroyal.com The consumer also has the option to select between 1 to 5 of the savings tips rather than selecting all 6 available. In this instance, each tip would need to be calculated individually. Below is an example using the “Tune engine” tip: Saving Tips Tune engine Estimated Savings per Tip $0.12 per gallon Percentage Ratio 4.14% If the user chooses the “Tune engine” tip , the following formula will be used to calculate total daily savings: Number miles driven per day / Vehicle’s MPG x Average cost per gallon / 100 x VAR % ratio = Total daily savings for selected tip ** VAR stands for variable, where VAR is the % ratio corresponding to the selected savings tip For example purposes, use the following data for “Tune engine” tip: Number of miles you drive per day = 60 miles Vehicle’s MPG = 24 miles per gallon Average gas cost per gallon = $2.90 Example estimated savings calculator formula: Number miles driven per day / Vehicle’s MPG 60/24 = 2.5 x Average cost per gallon 2.5 x $2.90 = $7.25 / 100 $7.25/100 = 0.0725 x VAR (tip percentage ratio) 0.0725 x 4.14 = $0.30 $0.30 is the estimated daily savings for implementing the “Tune engine” tip. To calculate estimated annual savings, multiply the number of days per year: $0.30 x 365 days = $109.55 www.uniroyal.com

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