Financial
Calculate monthly car payment, total interest paid, and full amortization schedule from loan amount, APR, and term. Compare dealer financing vs. credit-union rates before you sign.
An auto loan calculator computes your monthly car payment, total interest over the loan, and how much of each payment goes to principal versus finance charges. It uses standard amortization math — the same formula banks and credit unions use for fixed-rate installment loans.
Run it before F&I presents a payment: you will know whether a $32,000 loan at 7.2% for 72 months is really near $550/month or inflated by hidden add-ons. Compare dealer rate vs pre-approved credit union APR on the same amount financed.
A good outcome: monthly payment, total interest, and confidence to negotiate term and rate. For a full payment schedule, use the loan amortization calculator. For cash due at signing, pair with out-the-door price.
Loan amount = price minus down payment (and minus positive trade equity if it reduces what you finance). Do not forget tax, doc fees, and negative equity rolled in if those are financed.
APR is the annual note rate; term is in months (60 = five years, 72 = six).
A longer term lowers payment but increases total interest — always read both numbers before you stretch to 84 months.
If the dealer payment is higher than your result, ask for the amount financed and APR on the contract — gap, warranties, and doc packs are common gaps.
r = APR ÷ 12 ÷ 100 (monthly rate)
Payment = L × [ r(1+r)n ] ÷ [ (1+r)n − 1 ]
L = loan principal, n = months. If APR is 0%, Payment = L ÷ n.
Total interest = (Payment × n) − L
Monthly rate r = APR ÷ 12 ÷ 100. Payment = L × [r(1+r)n] ÷ [(1+r)n − 1] where L = principal, n = months. At 0% APR, payment = L ÷ n.
Example: $28,000 at 6.5% / 60 months → payment about $548; total paid ≈ $32,880 → interest ≈ $4,880.
Total interest = (payment × n) − L. Biweekly pay schedules use a different period count — see the biweekly calculator.
$32,000 financed at 7.2% APR for 72 months produces a monthly payment near $550 (enter exact numbers in the calculator). Total interest over six years is often several thousand dollars — why credit-union pre-approval is common advice.
The same $32,000 at 6.5% APR over 48 months raises the monthly payment but cuts total interest paid versus 72 months. The amortization table shows how much of each early payment is interest versus principal.
Dealer worksheets may include tax, doc fees, gap, and warranties in the amount financed while you modeled price minus down only. Verify APR is the note rate, not a “money factor” lease quote pasted wrong.
Rounding to the nearest cent and different day-count conventions can shift payment by a dollar or two — normal. Large gaps usually mean hidden add-ons or a different term than you entered.
Higher amount financed (tax, fees, negative equity rolled in) raises payment even at the same APR. Re-run with full OTD financed amount.
Yes, because you borrow less principal. It also reduces LTV, which can qualify you for better APR tiers with some lenders.
For most auto loans they are the same quoted number. APR includes certain fees in some products — read your Truth in Lending disclosure for the exact definition on your contract.
Pair this calculator with these related tools in the garage — same session, no signup.