Auto Loan Calculator
Calculate your monthly car loan payment, total interest and year-by-year amortization from vehicle price, down payment, rate and term. Free, no signup.
About the Auto Loan Calculator
This auto loan calculator turns a vehicle price, down payment, interest rate and term into the number that matters: your monthly payment. It uses the standard amortization formula M = P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the amount financed (price minus down payment and any trade-in), r the monthly rate and n the number of months — the same math banks use for car financing.
Beyond the payment, you get the total interest over the life of the loan, the total cost of the vehicle, and a year-by-year amortization table showing how much of each year's payments goes to principal versus interest and the balance remaining. Early payments are interest-heavy, which is why a bigger down payment or shorter term saves so much: financing 2,500,000 at 15% over 5 years costs about 1,068,000 in interest, but over 3 years only about 620,000.
Car buyers comparing bank auto-financing offers in Pakistan (where rates track KIBOR), India or anywhere else can test scenarios freely — everything runs in your browser and no financial data is uploaded.
How to Use the Auto Loan Calculator
- 1Enter the vehicle price and your down payment (plus any trade-in value).
- 2Enter the annual interest rate your bank quoted.
- 3Set the loan term in years or months.
- 4Read the monthly payment, total interest and year-by-year amortization.
Frequently Asked Questions
How is a car loan monthly payment calculated?
With the amortization formula M = P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1). Financing 2,500,000 at 15% per year (r = 0.0125 monthly) for 60 months gives a payment of about 59,475 per month. The calculator handles the exponents for you and shows the totals.
How much car loan interest will I pay in total?
Monthly payment × number of months − amount financed. In the example above: 59,475 × 60 = 3,568,500 paid on a 2,500,000 loan — about 1,068,500 of interest, roughly 43% of the amount borrowed. The amortization table shows how that interest is front-loaded.
Does a bigger down payment really help?
Yes, twice over: it shrinks the financed amount (less interest on less principal) and can qualify you for better rates. Raising the down payment on a 3,000,000 car from 15% to 30% cuts the financed amount by 450,000 and saves roughly 190,000 of interest at 15% over 5 years.
Is a shorter loan term better?
Financially, almost always: interest accrues over fewer months. The trade-off is a higher monthly payment — the 2,500,000 loan at 15% costs about 86,663 per month over 3 years versus 59,475 over 5. Pick the shortest term whose payment fits comfortably in your budget (lenders often want it under 30% of income).
Why is my bank's quoted installment slightly different?
Banks may add processing fees, insurance (comprehensive coverage is usually mandatory for financed cars), and in Pakistan many use variable KIBOR-linked rates that reprice periodically. Islamic car financing (Ijarah/Murabaha) structures the cost differently too. Use the calculator for the core comparison, then check the bank's full repayment schedule.