Auto Loan Calculator

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months
Finance

Estimate the monthly payment on a car loan along with the total interest and total amount you'll repay. Enter the amount financed (vehicle price minus any down payment and trade-in), the annual interest rate (APR) and the loan term in months. The calculator uses the standard amortizing-loan formula to work out a fixed monthly payment.

Formula

M = P · i(1+i)^n / ((1+i)^n − 1), where i = APR/12 and n = term in months
  • P is the amount financed, i is the monthly interest rate (APR ÷ 12 ÷ 100), and n is the number of monthly payments.
  • The result is a level monthly payment that fully repays the loan plus interest over the term.
  • Total interest is the sum of all payments minus the original loan amount.
  • Finance the price after your down payment and trade-in; a larger down payment lowers both the payment and total interest.

Example: $25,000 at 7% APR over 60 months

Inputs
  • Loan Amount: 25000
  • Annual Interest Rate (APR): 7 %
  • Loan Term (months): 60 months

A $25,000 loan at 7% APR (about 0.583% per month) over 60 months gives a monthly payment of roughly $495, totalling about $29,702 — around $4,702 in interest.

Frequently asked questions

How is the monthly car payment calculated?
It uses the amortizing-loan formula, which spreads the principal and interest into equal monthly payments over the term based on the monthly interest rate.
What should I enter as the loan amount?
Enter the amount you actually borrow — the vehicle price minus your down payment and any trade-in value, plus any taxes or fees rolled into the loan.
How does the loan term affect the cost?
A longer term lowers the monthly payment but increases the total interest you pay, because you owe the balance for longer.
What is APR?
The annual percentage rate is the yearly cost of borrowing. The calculator divides it by 12 to get the monthly rate used in the payment formula.
Does this include taxes, insurance or fees?
No. It covers principal and interest only. Registration, insurance and dealer fees are separate unless you add them to the financed amount.