Car Loan Payment Calculator

About this calculator

Auto loans are repaid using the standard amortization formula: M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. This produces a fixed monthly payment where the split between interest and principal shifts over time — early payments are weighted more toward interest, later ones more toward paying down the principal.

Car buyers use this calculation before ever visiting a dealership to know what monthly payment a given loan amount, rate and term will actually produce, since dealership financing offers can vary widely and a buyer who already knows their number is far less likely to be steered into an unfavorable term. Credit unions and banks use the identical formula to generate the payment schedules they quote, and the same math reveals why stretching a loan to a longer term lowers the monthly payment but increases total interest paid over the life of the loan.

Enter your loan amount, interest rate and loan term, and this calculator returns your estimated monthly payment along with the total amount paid and total interest.