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Online Car Loan Calculator
Easily estimate your monthly auto loan payment, total loan cost, and total interest paid using our precise online car loan calculator. Perfect for car buyers and financial planners.
| Result | |
|---|---|
| Monthly Payment ($) | 719.30 |
| Total Paid on Loan ($) | 25,894.80 |
| Total Paid in Interest ($) | 1,894.80 |
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What Is This Tool?
This calculator helps you determine your monthly auto loan payment based on the loan principal, interest rate, and loan term. It also calculates the total cost of the loan and the total interest you will pay over the life of the loan. This tool is useful when financing a vehicle purchase to assess affordability.
How to Use This Tool?
- Enter the vehicle price, your down payment, and any trade-in value to find the loan principal (P).
- Input the APR to calculate the monthly interest rate (r) by dividing APR by 12.
- Specify the loan term in years and multiply by 12 to get the total number of payments (n).
- Click the calculate button to see your estimated monthly payment (M), total loan cost, and total interest paid.
Key Features
- Calculates monthly auto loan payments using the standard amortization formula.
- Provides total cost of the loan including principal and interest.
- Determines total interest paid over the loan term.
- Accepts inputs for loan principal, annual percentage rate (APR), and loan duration.
- Offers precise floating-point calculations suited for auto financing.
Examples
- For a $30,000 vehicle with a $5,000 down payment, a 6% APR, and a 6-year loan term: P = $25,000, r = 0.06/12 = 0.005, n = 72. The monthly payment is approximately $414.28, total paid is about $29,828.16, and total interest is roughly $4,828.16.
Common Use Cases
- Car buyers estimating monthly payments before committing to a loan.
- Dealerships demonstrating financing options to customers.
- Lenders assessing payment schedules for auto loans.
- Financial planners helping clients budget vehicle purchases.
Tips & Best Practices
- Be sure to include all sources of down payment and trade-in values to calculate the loan principal accurately.
- Use the official APR provided by lenders to compute the monthly interest rate.
- Check your loan term carefully and convert years to months for precise payment calculations.
- Remember that this calculator does not include additional fees such as taxes or insurance, so plan your budget accordingly.
Limitations
- Does not account for sales tax, title fees, registration fees, dealership charges, insurance costs, or extended warranties.
- Calculations assume fixed interest rate and do not consider variable rate loans or prepayment penalties.
- Results are estimates and should not replace professional financial advice.
Frequently Asked Questions
- What variables do I need to calculate my monthly auto loan payment?
- You need the loan principal (vehicle price minus down payment and trade-in value), the monthly interest rate (APR divided by 12), and the total number of monthly payments (loan term in years times 12).
- Can this calculator factor in taxes and fees?
- No, this calculator does not include sales tax, title fees, registration fees, dealership charges, insurance, or extended warranties.
- How is the monthly payment calculated?
- It uses the standard amortization formula: M = (P × r × (1+r)^n) / ((1+r)^n - 1), where M is the monthly payment.
Key Terminology
- P (Loan Principal)
- The amount borrowed after subtracting down payment and trade-in value from the vehicle price.
- r (Monthly Interest Rate)
- The annual percentage rate divided by 12 to convert it to a monthly rate.
- n (Number of Payments)
- Total monthly payments over the loan term, calculated as loan duration in years multiplied by 12.
- M (Monthly Payment)
- The fixed monthly amount paid based on the loan principal, interest rate, and loan term.