Enter your loan amount, loan term, and interest rate into the calculator to determine your monthly payment.
Auto Loan Calculation Formula
The following formula is used to calculate the monthly payment for an auto loan.
Monthly Payment = Loan Amount * (Monthly Interest Rate / (1 - (1 + Monthly Interest Rate)^-Number of Payments))
Variables:
- Monthly Payment is the amount you pay every month ($)
- Loan Amount is the principal amount of the loan ($)
- Monthly Interest Rate is the annual interest rate divided by 12 (%)
- Number of Payments is the total number of monthly payments (Loan Term in years * 12)
To calculate the monthly payment, multiply the loan amount by the monthly interest rate, then divide by the difference between one and the value of one plus the monthly interest rate raised to the negative power of the