Calculate Car Payments, Interest, and Total Loan Costs
How the Calculator Works
This tool figures out your car loan payments using the standard amortized loan formula. It looks at your car’s price (after taxes, down payment, and trade-in), the annual interest rate, and how long you’ll take to pay off the loan.
Formula
M = P × [r(1 + r)ⁿ] / [(1 + r)ⁿ – 1]
- M: Monthly payment
- P: Loan amount
- r: Monthly interest rate (annual ÷ 12 ÷ 100)
- n: Number of months
How We Calculate
- Add sales tax to the vehicle price.
- Subtract your down payment and trade-in.
- Convert the annual interest to a monthly rate.
- Plug everything into the formula.
- Multiply monthly payment × loan term for total cost.
- Subtract the loan amount to get total interest.
Sources:
- Standard bank amortization formula
- Compound interest calculations
- Truth in Lending Act (TILA) standards
Note: Results are for estimates only and can change based on credit and lender fees.