Auto Loan Calculator.net

How to Use This Auto Loan Calculator

Using this auto loan calculator is simple:

1. Enter the loan amount in the "Loan Amount" field.
2. Enter the annual interest rate in the "Interest Rate" field.
3. Select the loan term in years from the dropdown menu.
4. Click the "Calculate" button to see your results.

The calculator will display your estimated monthly payment, total interest paid over the life of the loan, and the total amount paid.

Formula Used

The auto loan calculator uses the standard amortization formula to calculate monthly payments:

This formula accounts for the interest on the loan balance each month, creating a fixed monthly payment that gradually pays off both the principal and interest.

Worked Example

Let's calculate a monthly payment for a $25,000 loan with a 5% annual interest rate over 5 years:

1. Convert the annual rate to monthly: 5% ÷ 12 = 0.4167% or 0.004167
2. Calculate the number of payments: 5 years × 12 = 60 payments
3. Plug values into the formula:
   M = 25000 [ 0.004167(1 + 0.004167)^60 ] / [ (1 + 0.004167)^60 - 1 ]
4. The calculation results in a monthly payment of $482.50

Over 5 years, you would pay $482.50 each month, totaling $28,950 paid, with $3,950 in interest.