Enter your loan amount, annual interest rate, and loan term into the calculator to determine your monthly payment.
Auto Loan Calculation Formula
The following formula is used to calculate the monthly payment for an auto loan.
Monthly Payment = (Loan Amount * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^-Number of Payments)
Variables:
- Monthly Payment is the amount you pay every month ($)
- Loan Amount is the total amount of the loan ($)
- Monthly Interest Rate is the annual interest rate divided by 12 (%)
- Number of Payments is the loan term in years multiplied by 12 (months)
To calculate the monthly payment, multiply the loan amount by the monthly interest rate and then divide the result by the difference between 1 and 1 plus the monthly interest rate raised to the power of the negative number of payments.
What is Auto Loan Calculation?
Auto loan calculation refers to the process of determining the monthly payment you need to make to repay your car loan. This involves understanding your loan amount, the interest rate, and the loan term. Proper auto loan calculation ensures you can budget accordingly and understand the total cost of your car loan.