Car Loan Amortization Calculator
Calculate your car loan monthly payment and see how the balance pays off month by month. Enter loan amount, interest rate, and term in months for total interest cost and a payoff chart.
How to use this tool
- Enter loan amount, annual interest rate and loan term in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your monthly payment and the full breakdown beneath it.
Auto loans are typically 24–72 month installment loans with fixed monthly payments. The amortization schedule shows exactly how each dollar is split between repaying principal and paying interest.
⚠ This tool provides general estimates for education only and is not financial, tax or legal advice. Figures may not reflect your situation — verify with a qualified professional.
Formula
Monthly payment: PMT = P × r × (1 + r)n / ((1 + r)n − 1)
Where P = loan amount, r = monthly rate (annual rate ÷ 12), n = term in months. Total interest = PMT × n − P. Total paid = PMT × n.
How it works
This calculator applies the standard fixed-rate loan payment formula to compute a constant monthly payment, then walks through every payment month by month, splitting each into an interest portion (balance × r) and a principal portion, to produce the remaining balance at each step.
Results assume a fixed interest rate, equal monthly payments, and that the first payment is due one month after the loan originates. Fees, taxes, and dealer charges are not included, so your actual total cost may differ.
Worked example
- Inputs: $6,000 loan, 0% annual interest rate, 12-month term.
- Monthly payment = 6,000 / 12 = $500 (zero-rate formula: P ÷ n).
- Each month: interest portion = $0; principal portion = $500.
- After 12 payments: total paid = $500 × 12 = $6,000; total interest = $0.
Monthly payment: $500 | Total interest paid: $0 | Total amount paid: $6,000
Common mistakes to avoid
- Entering the sticker price instead of the financed amount after down payment and trade-in, inflating every monthly payment figure.
- Using the advertised APR without checking whether add-ons (GAP insurance, extended warranty) are rolled into the loan, raising the effective rate.
- Comparing loans solely on monthly payment — a 72-month loan always shows a lower payment but can cost thousands more in total interest than a 48-month loan.
Key terms
- Principal
- The original amount borrowed, before any interest is added.
- Annual interest rate
- The yearly cost of borrowing expressed as a percentage of the outstanding balance, divided by 12 to get the monthly rate.
- Amortization schedule
- A table showing the breakdown of each payment into interest and principal, and the remaining balance after each payment.
- Total interest paid
- The sum of all interest portions across every payment; equals total paid minus the original loan amount.
- Loan term
- The number of months over which the loan is repaid; a longer term lowers monthly payments but increases total interest.
Frequently asked questions
- Should I choose a shorter or longer loan term?
- Shorter terms mean higher monthly payments but far less total interest. A 36-month vs. 60-month loan on the same amount can save hundreds in interest.
- Does this include taxes, fees, or GAP insurance?
- No — enter only the financed amount (vehicle price minus down payment). Add fees to the principal if they are rolled into the loan.