Car Loan Calculator
Calculate your monthly auto loan payment from the loan amount, interest rate, and term — plus total interest paid over the life of the loan.
Fill in the required fields to see your result.
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This is your fixed monthly payment that fully pays off the loan (principal + interest) over the term at the given rate.
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How Car Loan Payments Are Calculated
A car loan's monthly payment uses standard amortization math, converting the loan principal, interest rate, and term into a fixed payment that pays off both principal and interest by the end of the term.
How to Calculate Your Car Loan Payment
Monthly Payment = Principal × [Monthly Rate × (1+Monthly Rate)^N] ÷ [(1+Monthly Rate)^N − 1].
Car Loan Calculator Formula
- Monthly Rate = Annual Interest Rate ÷ 12
- Number of Payments = Loan Term (years) × 12
- Monthly Payment = Principal × [Monthly Rate × (1+Monthly Rate)^N] ÷ [(1+Monthly Rate)^N − 1]
What Affects My Car Loan Payment?
Loan amount (the vehicle price minus your down payment and trade-in value), interest rate (largely determined by your credit profile and the lender), and loan term (longer terms lower monthly payments but increase total interest paid).
Car Loan Payment Examples
$25,000 loan, 6% annual interest, 5-year term: Monthly payment ≈ $483.32.
Common Car Loan Calculation Mistakes
Focusing only on the monthly payment without checking total interest paid over the loan term — a longer term can look more affordable monthly while costing significantly more overall. Not accounting for sales tax, fees, and add-ons that increase the actual loan principal beyond the vehicle's sticker price. Assuming the advertised rate is what you'll actually qualify for — your specific rate depends on credit profile and lender.
How to Use This Calculator
Enter the amount you're financing, your annual interest rate (APR), and the loan term in months.
Formula & Methodology
Uses the standard amortizing loan payment formula: Payment = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments.
Example: $25,000 at 6.5% for 60 months
Monthly rate = 6.5%/12 ≈ 0.5417%. n = 60. Monthly payment ≈ $489.15. Total paid ≈ $29,349. Total interest ≈ $4,349.
Assumes a fully amortizing, fixed-rate loan with equal monthly payments — does not include taxes, fees, insurance, or a down payment (enter only the amount actually financed).
For estimation purposes only. Actual loan terms are set by your lender — verify your exact payment and APR before signing.
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Frequently Asked Questions
- How is a car loan payment calculated?
- Using the standard amortizing loan formula, based on the amount financed, monthly interest rate, and number of monthly payments.
- Does this include tax and fees?
- No — enter only the amount actually being financed. Add sales tax, registration, and fees to your loan amount first if they're being financed.
- What loan term should I use?
- Common auto loan terms are 36, 48, 60, or 72 months — check your specific loan offer.
Last updated 7/15/2026