Auto Loan Calculator
Car Financing Calculator • 2026 rates
Quick Answer
Payment Formula: \(PMT = \frac{(Vehicle\ Price - Trade-in - Down\ Payment) \times r \times (1+r)^n}{(1+r)^n-1}\). For $30,000 car at 5% for 60 months: $566.14/month.
Vehicle Details
Loan Details
Tip: Extra payments reduce interest significantly.
Advanced Options
Auto Loan Analysis
$566.14
Monthly Payment
$3,968.40
Total Interest
$33,968.40
Total Paid
2028-01-01
Payoff Date
| Month | Payment | Principal | Interest | Balance |
|---|
| Year | Total | Principal | Interest | Balance |
|---|
Auto Loan Basics
What is an Auto Loan?
Money borrowed to purchase a vehicle with agreement to repay with interest over time.
Payment Formula
\(PMT = \frac{(VP - TI - DP) \times r \times (1+r)^n}{(1+r)^n-1}\)
Where PMT=monthly payment, VP=vehicle price, TI=trade-in, DP=down payment, r=monthly rate, n=payments.
Key Rules:
- Interest calculated on remaining balance
- Early payments save more interest
- Small rate changes = big savings
- Longer terms = higher total cost
Strategies
Amortization
Early payments are mostly interest, later payments are mostly principal.
Save on Auto Loans
- Shop for the best rate
- Make larger down payment
- Choose shorter loan term
- Pay extra monthly
Considerations:
- Depreciation vs loan term
- Gap insurance needs
- Prepayment penalties
- Credit score impact
FAQ
Q: How do extra payments save money?
A: Extra payments reduce principal immediately, lowering interest on future payments. $100 extra monthly saves ~$3,200 on 5-year loan.
Q: 48 vs 60-month loan?
A: 48-month: $629/month, $1,142 interest. 60-month: $566/month, $3,968 interest. Higher monthly but less total interest.
About
CFP Team
This calculator was created
This calculator was created by our Financial Calculators Team , may make errors. Consider checking important information. Updated: April 2026.