Bankrate Auto Loan Interest Calculator
'/%3E%3Ccircle cx='48' cy='39' r='19' fill='%23f2c9a5'/%3E%3Cpath d='M27 35c3-16 39-17 42 2-8-8-27-9-42-2z' fill='%23374151'/%3E%3Cpath d='M21 86c5-24 49-28 56 0z' fill='%232563eb'/%3E%3Ccircle cx='41' cy='41' r='2' fill='%23111827'/%3E%3Ccircle cx='55' cy='41' r='2' fill='%23111827'/%3E%3Cpath d='M42 52c4 3 9 3 13 0' stroke='%2392400e' stroke-width='3' fill='none' stroke-linecap='round'/%3E%3C/svg%3E)
Reviewed by Calculator Editorial Team
Use this Bankrate Auto Loan Interest Calculator to determine your monthly payments, total interest, and loan breakdown for an auto loan. Simply enter your loan amount, interest rate, and loan term to get an accurate calculation.
How to Use This Calculator
Using our Bankrate Auto Loan Interest Calculator is simple. Follow these steps:
- Enter the loan amount you're considering in the "Loan Amount" field.
- Input the annual interest rate offered by the lender in the "Interest Rate" field.
- Select the loan term (in years) from the dropdown menu.
- Click the "Calculate" button to see your monthly payment, total interest, and loan breakdown.
- Review the results and use the chart to visualize your loan repayment.
The calculator will display your monthly payment, total interest paid over the life of the loan, and a breakdown of principal and interest payments for each year.
Formula Used
The Bankrate Auto Loan Interest Calculator uses the standard auto loan payment formula:
Monthly Payment Formula
M = P [ i(1 + i)n ] / [ (1 + i)n - 1 ]
Where:
- M = Monthly payment
- P = Principal loan amount
- i = Monthly interest rate (annual rate divided by 12)
- n = Number of payments (loan term in years multiplied by 12)
This formula calculates the fixed monthly payment required to pay off the loan over the specified term.
Worked Example
Let's calculate a $25,000 auto loan with a 4.5% annual interest rate over 5 years (60 months).
- Convert annual rate to monthly: 4.5% ÷ 12 = 0.375% or 0.00375 in decimal
- Calculate the monthly payment using the formula:
M = 25000 [ 0.00375(1 + 0.00375)60 ] / [ (1 + 0.00375)60 - 1 ]
M ≈ $464.89
- Total interest paid: (Monthly payment × 60) - Loan amount = ($464.89 × 60) - $25,000 = $4,095.40
This example shows that with a $25,000 loan at 4.5% interest over 5 years, you would pay approximately $464.89 per month with a total interest cost of $4,095.40.
Loan Comparison Table
Compare different loan scenarios to find the best option for your needs.
| Loan Amount | Interest Rate | Term (Years) | Monthly Payment | Total Interest |
|---|---|---|---|---|
| $20,000 | 4.0% | 4 | $476.54 | $2,385.44 |
| $20,000 | 4.5% | 4 | $493.60 | $2,838.40 |
| $20,000 | 5.0% | 4 | $511.66 | $3,339.84 |
| $20,000 | 4.0% | 5 | $392.36 | $1,574.40 |
| $20,000 | 4.5% | 5 | $408.33 | $2,039.80 |
This comparison table shows how different interest rates and loan terms affect your monthly payments and total interest costs.
Frequently Asked Questions
How accurate is the Bankrate Auto Loan Interest Calculator?
Our calculator uses standard financial formulas to provide accurate results. The calculations are based on the loan amount, interest rate, and term you enter, following the same principles used by financial institutions.
Can I use this calculator for refinancing?
Yes, you can use this calculator to estimate your new monthly payments and total interest costs when refinancing your auto loan. Simply enter the new loan terms and compare them to your current loan.
Does this calculator account for taxes and fees?
This calculator provides an estimate of your monthly payments and total interest based on the loan amount, interest rate, and term. It does not include taxes, fees, or other optional charges that may apply to your specific loan.
How do I find my current loan interest rate?
You can find your current loan interest rate by checking your loan agreement, contacting your lender, or reviewing your loan statements. The interest rate is typically listed as the Annual Percentage Rate (APR).