Auto Loan Calculator for Excel

This auto loan calculator helps you determine monthly payments, total interest, and amortization schedule for car loans. The calculator works in your browser and provides Excel formulas for spreadsheet use.

How to Use This Calculator

To calculate your auto loan payments:

Enter the loan amount in dollars
Enter the annual interest rate (APR)
Enter the loan term in years
Click "Calculate" to see your monthly payment and loan details

The calculator shows your monthly payment, total interest paid, and total amount paid over the life of the loan. You can also view an amortization chart that breaks down your payments by month.

Formula Used

The monthly payment for an auto loan is calculated using the standard loan payment formula:

Monthly Payment = P × (r(1 + r)^n) / ((1 + r)^n - 1)

Where:

P = Principal loan amount
r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
n = Number of payments (loan term in years × 12)

Total interest paid is calculated by subtracting the original loan amount from the total amount paid.

Worked Example

Let's calculate a $25,000 loan at 5% APR for 5 years:

Monthly interest rate = 5% ÷ 12 = 0.4167%
Number of payments = 5 × 12 = 60
Monthly payment = $25,000 × (0.004167(1 + 0.004167)^60) / ((1 + 0.004167)^60 - 1) ≈ $463.18
Total amount paid = $463.18 × 60 ≈ $27,790.80
Total interest paid = $27,790.80 - $25,000 = $2,790.80

This example shows you'll pay about $463 per month with $2,790 in total interest over 5 years.

Excel Formulas

For Excel users, here are the formulas to calculate auto loan payments:

Monthly Payment: =PMT(rate, nper, pv)

Total Interest: =PPMT(rate, per, nper, pv)

Amortization Schedule: Use the PMT function in a table with sequential payment numbers

Where:

rate = monthly interest rate (annual rate ÷ 12 ÷ 100)
nper = number of payments (loan term × 12)
pv = principal loan amount
per = payment period number (1 to nper)

FAQ

How accurate is this auto loan calculator?

This calculator uses standard financial formulas and provides accurate results based on the inputs you provide. For precise calculations, use your bank's loan calculator.

Can I use these formulas in Excel?

Yes, the Excel formulas provided in the guide can be used in any spreadsheet software that supports financial functions.

What's the difference between APR and APY?

APR (Annual Percentage Rate) is the simple annual interest rate, while APY (Annual Percentage Yield) includes compounding effects and is generally higher than APR.