Auto Loan

Estimate monthly car payments and total interest.

Formula & Methodology

Monthly payment M = P × [r(1+r)^n] / [(1+r)^n − 1], with P the loan amount, r the monthly rate, and n the number of months.

Worked Example

A $25,000 auto loan at 6.5% for 60 months costs about $489/month.

Frequently Asked Questions

How does the loan term affect cost?

A longer term lowers the monthly payment but increases total interest. A shorter term costs more per month but far less overall.

Should I put money down?

A down payment reduces the loan amount, lowering both the monthly payment and total interest, and may help you avoid being underwater.

Does this include taxes and fees?

No. Sales tax, registration, and dealer fees are not included unless you fold them into the loan amount you enter.

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