Car Loan Calculator - Auto Loan Payment Calculator

Car Loan Calculator - Calculate Auto Loan Payments with Amortization

Calculate your car loan payment and view the full amortization schedule with our free car loan calculator. See exactly how much goes to principal vs. interest each month.

How to Use the Car Loan Calculator

1. Enter the car price you're planning to pay
2. Enter your down payment amount
3. Select loan term (months)
4. Enter interest rate (APR)
5. View your payment and full amortization schedule

Understanding Car Loan Amortization

What is Amortization?

Amortization is how your loan payments are split between principal and interest over time. In the early years, more of your payment goes to interest. Later, more goes to principal.

Sample Amortization: $24,000 loan at 7.5% for 60 months

Month	Payment	Principal	Interest	Balance
1	$480.68	$330.68	$150.00	$23,669.32
12	$480.68	$351.47	$129.21	$20,047.13
24	$480.68	$374.23	$106.45	$16,207.62
36	$480.68	$398.58	$82.10	$12,133.84
48	$480.68	$424.66	$56.02	$7,808.71
60	$480.68	$452.66	$28.02	$0.00

Car Loan Payment Formula

M = P × [r(1 + r)^n] / [(1 + r)^n - 1]

Where:

• M = Monthly payment
• P = Principal (loan amount)
• r = Monthly interest rate (annual rate / 12)
• n = Number of payments

Loan Term Comparison

For a $24,000 loan at 7.5% APR:

Term	Monthly	Total Interest	Total Paid
36 months	$745.91	$2,852.76	$26,852.76
48 months	$580.72	$3,874.56	$27,874.56
60 months	$480.68	$4,840.80	$28,840.80
72 months	$414.27	$5,827.44	$29,827.44

Interest Rate Impact

For a $24,000 loan over 60 months:

Rate	Monthly	Total Interest	Total Paid
4%	$441.48	$2,488.80	$26,488.80
6%	$463.84	$3,830.40	$27,830.40
7.5%	$480.68	$4,840.80	$28,840.80
10%	$509.76	$6,585.60	$30,585.60

How to Pay Off Your Car Loan Faster

Strategies to Save Interest:

• Make extra payments: Apply additional money to principal
• Round up payments: Pay $500 instead of $480.68
• Bi-weekly payments: Pay half monthly every two weeks
• Refinance: Lower rate if your credit improved
• Shorter term: Choose 36-48 months instead of 60-72

Impact of Extra $100/month:

• Pay off 12 months early
• Save $1,200+ in interest
• Build equity faster

Refinancing Your Car Loan

When to Refinance:

• Interest rates dropped 1%+ since your loan
• Your credit score improved significantly
• You want to lower monthly payment
• You want to pay off faster with same payment

Refinancing Example:

Current Loan: $24,000 at 10% for 60 months = $509.76/month
Refinance: $20,000 balance at 6% for 48 months = $469.70/month
Savings: $40/month + lower rate

New vs. Used Car Loans

New Car Loans:

• Lower interest rates (typically 1-2% less)
• Longer terms available (72-84 months)
• Higher loan amounts
• Rebates and special financing (0% APR offers)

Used Car Loans:

• Higher interest rates
• Shorter terms (typically 36-60 months)
• Lower loan amounts
• Less depreciation risk