Free Auto Loan Calculator
Calculate your monthly car payment based on vehicle price, down payment, trade-in value, interest rate, and loan term.
USD
USD
USD
%
Monthly Payment
$586.98
Total Amount Paid$35,219.07
Total Interest$5,219.07
Principal
Total Interest
Monthly Payment vs Interest Rate
How Auto Loan Payments Are Calculated
The monthly payment formula is the same amortization formula used for mortgages:
M = P × [r(1+r)^n] / [(1+r)^n - 1]
Where P = loan amount (price - down payment - trade-in), r = monthly rate, n = number of months.
Example Calculation
A $35,000 car with $5,000 down, no trade-in, 6.5% APR for 60 months.
- 01Loan amount = $35,000 - $5,000 = $30,000
- 02Monthly rate = 6.5% / 12 = 0.5417%
- 03Monthly payment = $30,000 × 0.005417 × 1.005417^60 / (1.005417^60 - 1)
- 04= $586.87
- 05Total paid = $586.87 × 60 = $35,212
- 06Total interest = $35,212 - $30,000 = $5,212
Example Calculations
What is the monthly payment on a $30,000 car loan?
$580.59/month
- 1.Vehicle price: $30,000
- 2.Down payment: $3,000
- 3.Loan amount: $27,000
- 4.Interest rate: 5.5% for 5 years (60 months)
- 5.Monthly payment = $515.73
What is the monthly payment on a $20,000 car at 6%?
$386.66/month
- 1.Loan amount: $20,000
- 2.Interest rate: 6% annually
- 3.Term: 5 years (60 months)
- 4.Monthly payment = $386.66
- 5.Total interest: $3,199.40
Frequently Asked Questions
Learn More
How to Calculate Mortgage Payments
Learn how to calculate mortgage payments step by step. Understand the mortgage payment formula, principal vs. interest breakdown, escrow, PMI, and how to use amortization schedules.