Auto Loan Calculator
This auto loan calculator works out the monthly payment on a car loan, along with the total amount you will pay and the interest included in it. Enter the vehicle price, your down payment, the annual interest rate and the term in months, and it instantly returns the fixed monthly payment and a full breakdown. It is the fastest way to see whether a car fits your budget before you sign any financing agreement, and to compare offers from dealers and banks side by side.
Monthly payment
Total paid
Total interest
Vehicle price
The payment does not include insurance, administrative fees or commissions. The result is an estimate based on the French amortization system (fixed payment).
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How it works
The loan amount is simply the vehicle price minus your down payment. That amount is then amortized over the chosen number of months using the French amortization system, which produces a fixed monthly payment. The formula is M = P·i·(1+i)^n / ((1+i)^n − 1), where P is the loan amount, i is the monthly interest rate (the annual rate divided by twelve and by one hundred) and n is the number of monthly payments. Early payments are mostly interest and later ones mostly principal, but the payment itself stays constant. The total paid is the monthly payment multiplied by the number of months, and the total interest is that total minus the original loan amount.
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Preguntas frecuentes
- How is the monthly car payment calculated?
- First the loan amount is found by subtracting your down payment from the vehicle price. That amount is amortized over the term using the fixed-payment formula M = P·i·(1+i)^n / ((1+i)^n − 1), where P is the loan, i is the monthly rate and n is the number of months. The result is the same payment every month for the whole term.
- Does a bigger down payment lower my payment?
- Yes. The down payment reduces the amount you actually borrow, so both the monthly payment and the total interest go down. A larger down payment also lowers your risk of owing more than the car is worth and can help you qualify for a better rate.
- What interest rate should I use?
- Use the annual percentage rate (APR) that the lender quotes for the loan. Rates vary with your credit score, the loan term, whether the car is new or used, and current market conditions. If you have several offers, enter each rate to see how the monthly payment and total interest change.
- Does this calculator include taxes, insurance and fees?
- No. It estimates only the principal and interest portion of the loan. Taxes, registration, dealer fees, mandatory insurance and any add-ons are not included, so your real monthly outlay may be higher. Treat the result as the financing cost of the car itself.
- What happens if I choose a longer term?
- A longer term spreads the loan over more months, so each monthly payment is smaller. However, because you are paying interest for longer, the total interest and the total cost of the car both rise. Shorter terms mean higher payments but less interest overall.