All South Auto Loan Calculator

How to Use This Calculator

To use the All South Auto Loan Calculator:

1. Enter the loan amount in dollars (e.g., $25,000)
2. Select the loan term in years (e.g., 5 years)
3. Enter the annual interest rate (e.g., 4.5%)
4. Click "Calculate" to see your estimated monthly payment, total interest, and total cost
5. Review the amortization schedule chart to see how your loan balances over time

The calculator uses the standard auto loan formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ], where M is the monthly payment, P is the principal loan amount, i is the monthly interest rate, and n is the number of payments.

Formula Used

Additional calculations include:

• Total interest paid = (Monthly payment × Number of payments) - Principal loan amount
• Total cost of loan = Principal loan amount + Total interest paid

Worked Example

Let's calculate a loan for $25,000 at 4.5% annual interest over 5 years (60 months).

1. Convert annual interest rate to monthly: 4.5% ÷ 12 = 0.375% or 0.00375 in decimal
2. Plug values into the formula:
   M = 25000 [ 0.00375(1 + 0.00375)^60 ] / [ (1 + 0.00375)^60 - 1 ]
3. Calculate the monthly payment: $452.34
4. Total interest paid: ($452.34 × 60) - $25,000 = $1,730.40
5. Total cost of loan: $25,000 + $1,730.40 = $26,730.40

This example shows that a $25,000 loan at 4.5% over 5 years would have a monthly payment of $452.34, total interest of $1,730.40, and total cost of $26,730.40.