Auto Loan Amortization Calculator (Monthly Payment Estimator)

Auto Loan Amortization Calculator

Loan Amount ($) Loan Term (Years) Annual Interest Rate (%) Estimated Monthly Payment ($) Total Loan Cost ($)

function calculateLoan() { const loanAmount = parseFloat(document.getElementById(“loanAmount”).value); const loanTerm = parseFloat(document.getElementById(“loanTerm”).value); const interestRate = parseFloat(document.getElementById(“interestRate”).value) / 100; if (isNaN(loanAmount) || isNaN(loanTerm) || isNaN(interestRate) || loanAmount <= 0 || loanTerm <= 0 || interestRate el.value = “”); }

This Auto Loan Amortization Calculator helps you estimate your monthly payments and the total loan cost based on your loan amount, term, and interest rate.

Amortization Formula

Monthly Payment = Loan Amount × (Monthly Interest Rate × (1 + Monthly Interest Rate)^Number of Payments) ÷ ((1 + Monthly Interest Rate)^Number of Payments – 1)

Example Calculation

$20,000 loan, 5 years, 3.5% annual interest → Monthly Payment = $364.04, Total Loan Cost = $21,842.34.

Why It Matters

This calculator helps you understand your financial commitment and plan your budget accordingly when taking out an auto loan.

Smart Strategy

Choose a loan term that balances monthly affordability with total loan cost. Shorter terms generally mean higher monthly payments but less paid in interest overall.

FAQs

How can I reduce my monthly payment? You can either extend the loan term or lower the loan amount by making a larger down payment.

What if I pay extra each month? Paying extra towards the principal can reduce the total interest paid and shorten the loan term.

Auto Loan Amortization Calculator Monthly

Auto Loan Amortization Calculator (Monthly Payment Estimator)