Auto Loan Calculator
Calculate your monthly car payment, total interest, and full amortization schedule.
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Auto Loan Calculator — How It Works
Our free Auto Loan Calculator helps you figure out exactly what your monthly car payment will be before you set foot in a dealership. Enter your vehicle price, down payment, trade-in value, interest rate, loan term, and local tax rate — and the calculator instantly shows your monthly payment, total interest paid, and a full month-by-month amortization schedule.
The calculator supports five regions: Canada, USA, UK, Australia, and Worldwide. Currency symbols and default tax hints update automatically when you switch tabs.
What Is an Auto Loan?
An auto loan is a secured loan used to purchase a vehicle. The lender holds the vehicle as collateral until the loan is repaid. You borrow the amount needed after applying your down payment and any trade-in value, then repay it in fixed monthly instalments over the agreed term — typically 24 to 84 months. Each payment covers both a portion of the principal (the original loan amount) and interest charged by the lender.
How Monthly Payments Are Calculated
Monthly payments use the standard amortization formula:
M = P × [r(1+r)^n] / [(1+r)^n − 1]
Where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. Early payments are weighted more toward interest; later payments pay down more principal — this is standard amortization.
Tips to Reduce Your Total Auto Loan Cost
- Increase your down payment. A larger down payment reduces the amount financed and lowers both your monthly payment and total interest.
- Choose a shorter loan term. 36- or 48-month loans carry higher monthly payments but significantly less total interest than 72- or 84-month terms.
- Shop for the best rate. Even a 1% difference in interest rate can save hundreds or thousands over the life of the loan.
- Trade in your old vehicle. A trade-in reduces the amount financed and lowers your out-of-pocket cost.
- Make extra payments when possible. Paying extra toward principal reduces your balance faster and cuts total interest paid.