Auto Payment Calculator Bankrate

How to Use This Calculator

Using our auto payment calculator is simple:

1. Enter your loan amount in the first field.
2. Input your annual interest rate.
3. Select the loan term in years.
4. Click "Calculate" to see your monthly payment.

The calculator will display your estimated monthly payment, total interest paid over the life of the loan, and an amortization schedule chart.

Formula Explained

The auto payment calculator uses the standard auto loan payment formula:

This formula accounts for the interest on your loan balance each month, which is added to your principal balance until the loan is fully paid off.

Worked Example

Let's calculate a $25,000 loan at 4.5% annual interest for 5 years:

1. Monthly interest rate = 4.5% ÷ 12 = 0.375% or 0.00375
2. Number of payments = 5 × 12 = 60
3. Plug into formula: M = 25000 [ 0.00375(1 + 0.00375)^60 ] / [ (1 + 0.00375)^60 - 1 ]
4. Calculated monthly payment = $477.32

Total interest paid over 5 years would be $1,777.20, bringing the total amount paid to $26,777.20.