What is the formula for the Tesla Finance calculation?

According to http://www.teslamotors.com/true-cost-of-ownership with the fields set to a rate of 3.3%, down payment 10% over a 72 month term, it calculates this to be \$980/mo.

How did they get there? I'm not getting that number if I just crunch the numbers manually, are they including other factors in the calculation?

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The formula is M = P * ( J / (1 - (1 + J)^ -N)).

M: monthly payment RESULT = 980.441...

P: principal or amount of loan 63963 (71070 - 10% down * 71070)

J: monthly interest; annual interest divided by 100, then divided by 12. .00275 (3.3% / 12)

N: number of months of amortization, determined by length in years of loan. 72 months

See this wikipedia page for the derivation of the formula

• If you have excel you can plug this formula in =PMT(0.033/12,72,71070*0.9). First parameter is the rate, second is the number of payments and the last one is the amount. – Vitalik Oct 11 '13 at 19:49