Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with over 10 years of experience in financial planning.
David Chen is a Certified Financial Analyst with over 10 years of experience in financial planning.
This car loan calculator allows you to calculate your car loan payments based on the principal, interest rate, term length, and monthly payments. Enter any three values, and the fourth will be calculated for you!
Car Loan Calculator NerdCalculator
Car Loan Formula
Monthly Payment = [Loan Amount * (Interest Rate / 100) * (1 + Interest Rate / 100)^Term] / [(1 + Interest Rate / 100)^Term - 1]
Formula Source: Investopedia
Variables
- Loan Amount: The total amount of the loan.
- Interest Rate: The annual interest rate (as a percentage).
- Loan Term: The number of years you will be paying the loan.
- Monthly Payment: The amount you need to pay every month.
Related Calculators
What is a Car Loan?
A car loan is a type of loan taken out to purchase a vehicle, where the car itself serves as collateral. The borrower agrees to repay the loan in installments over a specified period of time.
How to Calculate Car Loan Payments (Example)
- Enter your loan amount, interest rate, and loan term.
- Click “Calculate” to see your monthly payment.
- Review the results to ensure you can afford the monthly payment.
Frequently Asked Questions (FAQ)
How do I lower my monthly car loan payment? You can lower your payment by refinancing your loan or extending the loan term.
What happens if I miss a car loan payment? Missing a payment may result in late fees, and repeated missed payments can damage your credit score.
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