Car Loan Payment Calculator
Calculate your monthly car loan payment, total amount paid, and total interest charged over the life of your loan.
Formula
Loan Principal (P) = Vehicle Price − Down Payment − Trade-In Value
Monthly Interest Rate (r) = Annual Interest Rate ÷ 12
Monthly Payment (M) = P × [r(1 + r)n] ÷ [(1 + r)n − 1]
Total Payment = M × n
Total Interest = Total Payment − P
Where n = number of monthly payments (loan term in months).
When the interest rate is 0%, the monthly payment simplifies to P ÷ n.
Assumptions & References
- Payments are made monthly at the end of each period (ordinary annuity).
- The interest rate is fixed for the entire loan term (no variable-rate adjustments).
- Sales tax, registration fees, and dealer fees are not included; add them to the vehicle price if applicable.
- Trade-in value and down payment are applied directly to reduce the financed principal.
- Formula source: standard amortizing loan formula used by the CFPB and financial institutions.
- Typical U.S. auto loan rates range from ~5%–10% depending on credit score and lender (source: Federal Reserve G.19).