Car Loan Interest Calculator
Calculate monthly payments, total interest, and total cost for a car loan based on loan amount, interest rate, and loan term.
Published by:
isCalculator Editorial Team
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How to use this tool?
Follow these steps to calculate your car loan interest:
- Enter Loan Amount ($): Type the total amount you plan to borrow (e.g., 25000). Use a positive number.
- Enter Annual Interest Rate (%): Input the yearly interest rate as a percentage (e.g., 5 for 5%). Use 0 for a zero-interest loan.
- Enter Loan Term (months): Specify the loan duration in whole months (e.g., 60 for 5 years). Must be a positive integer.
- Click "Calculate": Press the button or hit Enter. Invalid inputs will be highlighted in red.
Results show:
- Monthly Payment: Fixed amount due each month.
- Total Interest: Total interest paid over the loan term.
- Total Payment: Loan amount plus total interest.
Tip: All monetary values are in US dollars ($). The calculator uses the standard amortization formula for fixed-rate loans.
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Frequently Asked Questions
The monthly payment is calculated using the formula for an amortizing loan: M = P * [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the number of monthly payments.
If the interest rate is 0%, the monthly payment is simply the loan amount divided by the number of months, and total interest is zero.
Yes, this calculator works for any fixed-rate amortizing loan, such as personal loans or mortgages, as long as the payments are monthly.
