Car Loan Payment Calculator Calculator
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Frequently Asked Questions
How do I calculate my monthly car loan payment?
To calculate your monthly car loan payment, you need three key pieces of information: the loan amount (principal), the annual interest rate (APR), and the loan term in months. Our calculator uses the standard amortization formula to compute your fixed monthly payment, which includes both principal and interest.
What factors affect my car loan payment amount?
Several factors influence your monthly car loan payment: the loan amount (higher loan = higher payment), interest rate (lower rate = lower payment), loan term (longer term = lower monthly payment but more total interest), and any down payment (larger down payment = smaller loan amount and monthly payment).
Should I choose a longer or shorter loan term?
A shorter loan term typically means higher monthly payments but less total interest paid over the life of the loan. A longer term results in lower monthly payments but more total interest. Choose a term that balances your monthly budget with the total cost you want to pay. Generally, terms of 36-60 months offer a good balance.
How much interest will I pay on my car loan?
The total interest you pay depends on the loan amount, interest rate, and loan term. Our calculator shows both your monthly payment and total interest paid. For example, a $25,000 loan at 5.5% APR for 60 months results in approximately $3,650 in total interest over the loan period.
