Calculate your car loan payments including principal, interest, taxes, and fees. Get instant monthly payment estimates, view total interest costs, and explore a full amortization schedule for your auto loan.
| Month | Payment | Principal | Interest | Balance |
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See how different loan parameters affect your monthly payment and total interest costs.
Vehicle Price: $35,000
Down Payment: $5,000
Interest Rate: 6.5% APR
Loan Term: 5 Years (60 months)
Loan Amount: $30,000
This is a typical scenario for a new mid-range sedan. A 20% down payment helps reduce the loan amount and total interest paid over the life of the loan.
Vehicle Price: $18,000
Down Payment: $3,000
Interest Rate: 4.2% APR
Loan Term: 4 Years (48 months)
Loan Amount: $15,000
A lower interest rate on a used car with a shorter term results in significantly less interest paid. The total cost of credit is only $1,342.56.
Vehicle Price: $60,000
Down Payment: $10,000
Interest Rate: 7.8% APR
Loan Term: 7 Years (84 months)
Loan Amount: $50,000
A longer loan term lowers the monthly payment but dramatically increases total interest paid. The borrower pays over $15,000 in interest with a 7-year term.
The standard loan amortization formula used to calculate the monthly payment is:
Where:
Each monthly payment consists of two parts: principal and interest. In the early months, a larger portion of your payment goes toward interest. Over time, as the principal balance decreases, more of your payment goes toward the principal. This process is called amortization.
Monthly Interest Calculation:
Monthly Principal Calculation:
The remaining balance after each payment is the previous balance minus the principal portion. This process repeats each month until the balance reaches zero at the end of the loan term.
Total Interest is the sum of all interest payments over the life of the loan, calculated as:
Total Cost represents the complete amount you'll pay for the vehicle, including your down payment:
Input the total price of the vehicle you're considering, including any dealer fees, taxes, and add-ons. This is the full negotiated price before your down payment.
Enter the amount you plan to pay upfront. A larger down payment reduces your loan amount, which lowers monthly payments and total interest. Aim for at least 20% down if possible.
Enter the Annual Percentage Rate (APR) offered by your lender. Your credit score, loan term, and market conditions affect your rate. Check with multiple lenders for the best rate.
Select how many years you want to finance. Shorter terms (3-4 years) have higher payments but less total interest. Longer terms (6-8 years) lower payments but cost more in interest.
Click "Calculate Auto Loan" to see your monthly payment, total interest, total cost, and payoff date. Scroll down to view the full amortization schedule showing every payment.
Try different combinations of down payments, interest rates, and loan terms to find the optimal balance between affordable monthly payments and minimizing total interest costs.
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An auto loan is a secured loan used to purchase a vehicle. The vehicle itself serves as collateral, which means if you default on payments, the lender can repossess the car. Auto loans typically have fixed interest rates and fixed monthly payments spread over a predetermined term, usually ranging from 3 to 8 years.
Auto loan interest is calculated using simple interest on the outstanding principal balance. Unlike some other loan types, auto loans use a declining balance method — as you make payments, the principal decreases, and future interest charges are calculated on the smaller balance. This is why paying extra toward the principal early in the loan term can save you significant money on interest.
Several factors determine how much your monthly auto payment will be:
Dealerships often offer promotional financing, especially on new vehicles, which can include 0% APR for qualified buyers. However, these deals may require excellent credit and a shorter loan term. Banks and credit unions can offer competitive rates, especially if you have an existing relationship. It's always wise to get pre-approved by a bank or credit union before visiting the dealership so you can compare offers and negotiate from a position of strength.
Our Auto Loan Calculator helps you estimate your monthly car payments, total interest costs, and full payment schedule for any auto loan. Whether you're shopping for a new or used vehicle, this tool provides accurate calculations based on the standard loan amortization formula used by banks, credit unions, and auto finance companies.
Uses the exact same loan amortization formula (PMT) that financial institutions use to calculate your payments, ensuring accuracy you can trust.
See every single payment broken down by principal and interest, from month one through your final payoff. Understand exactly where your money goes.
Easily adjust down payments, interest rates, and loan terms to find the perfect balance between affordable payments and minimizing total interest costs.
All calculations are performed in your browser using JavaScript. No personal information is stored, transmitted, or shared with any third parties.
Learn about auto loan terminology, amortization, interest calculations, and strategies to save money with our comprehensive guides and examples.
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Important Disclaimer: This Auto Loan Calculator provides estimates based on the standard loan amortization formula and should not be considered financial advice. Actual loan terms, interest rates, and fees vary by lender, credit score, and market conditions. The calculator does not account for taxes, dealer fees, registration costs, or extended warranties unless you include them in the vehicle price. Always review your actual loan agreement carefully and consult with a qualified financial advisor before making any borrowing decisions. This tool is for informational and educational purposes only.