How is an auto loan payment calculated?

Monthly payments follow the amortization formula M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly rate (annual divided by 12), and n is the number of months. Each payment is split between principal and interest, with the balance going down over time.

What is a typical auto loan term?

Auto loan terms commonly range from 36 to 84 months. Shorter terms have higher monthly payments but lower total interest. Longer terms reduce the monthly payment but increase total cost and can leave you owing more than the vehicle is worth.

Does the interest rate affect total cost much?

Yes. Even a one percentage point difference can add or save hundreds of dollars across the loan term. Compare offers from multiple lenders and check the APR rather than the headline rate, because APR includes most fees.

Is my data sent to a server?

All calculations run in your browser. Our servers are not involved at any point.

Auto Loan Calculator

Estimate the monthly payment and total interest on a car loan. Enter the loan amount, annual interest rate, and term in months or years. The calculator uses the standard amortization formula and runs locally in your browser.

Loan type

Currency

Loan amount

Interest rate (% per year)

Term

Formula: M = P[r(1+r)^n] / [(1+r)^n - 1], where P = loan amount, r = monthly rate, n = months

Monthly payment

$500.95

Total interest: $5,056.92
Total paid: $30,056.92
Loan amount: $25,000.00
Number of payments: 60

Where your money goes over the loan term

Principal

Interest

$25,000.00 principal$5,056.92 interest

Calculations are estimates for informational purposes only. Consult a financial professional for advice.

How it works

The monthly payment uses the standard amortization formula M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r the monthly rate (annual rate divided by 12) and n the number of monthly payments. With the calculator's starting values, a 25,000 car loan at 7.5% over the auto default of 60 months, r is 0.075 / 12 = 0.00625 and n is 60, so the payment is 500.95 a month and total interest is 5,056.92. A longer term lowers the payment but raises the total interest, and the principal-versus-interest bar shows the split.

Processing runs in your browser

Every calculation runs locally in your browser as JavaScript. Our servers are not involved at any point.

Calculations are estimates for informational purposes only. Consult a financial professional for advice.

Frequently asked questions

How is an auto loan payment calculated?: Monthly payments follow the amortization formula M = P[r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly rate (annual divided by 12), and n is the number of months. Each payment is split between principal and interest, with the balance going down over time.
What is a typical auto loan term?: Auto loan terms commonly range from 36 to 84 months. Shorter terms have higher monthly payments but lower total interest. Longer terms reduce the monthly payment but increase total cost and can leave you owing more than the vehicle is worth.
Does the interest rate affect total cost much?: Yes. Even a one percentage point difference can add or save hundreds of dollars across the loan term. Compare offers from multiple lenders and check the APR rather than the headline rate, because APR includes most fees.
Is my data sent to a server?: All calculations run in your browser. Our servers are not involved at any point.

Last reviewed September 30, 2026

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