5 Year Used Auto Loan Calculator

How to Use This Calculator

Using this calculator is simple:

1. Enter the purchase price of the used car in the "Loan Amount" field.
2. Input your desired down payment amount or percentage.
3. Enter the annual interest rate offered by the lender.
4. Select the loan term (5 years in this case).
5. Click "Calculate" to see your estimated monthly payment and total costs.

The calculator will display your monthly payment, total interest paid over 5 years, and the total amount you'll pay back to the lender.

Formula Used

The calculation uses the standard auto loan payment formula:

Total Interest = (Monthly Payment × n) - Principal

Total Payment = Monthly Payment × n

Worked Example

Let's calculate a 5-year loan for a $15,000 used car with a 5% annual interest rate and $3,000 down payment:

1. Principal = $15,000 - $3,000 = $12,000
2. Monthly Rate = 5% / 12 = 0.4167%
3. Number of Payments = 5 × 12 = 60
4. Monthly Payment = $12,000 × (0.004167(1 + 0.004167)^60) / ((1 + 0.004167)^60 - 1) ≈ $232.50
5. Total Interest = ($232.50 × 60) - $12,000 = $1,350
6. Total Payment = $232.50 × 60 = $14,130

This example shows you'll pay approximately $232.50 per month, with $1,350 in total interest over 5 years.