How much is that car payment going to cost you on a monthly basis? No matter how you look at the calculation, you will always arrive at the same monthly payment. The only difference between a higher and lower monthly car loan payment is the interest the bank charges a borrower. Use the Finance Devil car loan calculator to calculate your monthly car loan payment.
The first variable is the total car loan amount. To complete the calculation, you will need the monthly interest rate, which is the annual interest rate divided by 12. For example, if the annual interest rate is 3.11%, the monthly interest rate is .0311/12, or 0.002591667. Lastly, you will need the total number of months required to fully amortize the loan.
$, Monthly Payment = $, Car Loan Amount × (monthly interest rate
× (1 + monthly interest rate)n ÷ ((1 + monthly interest rate)n – 1]
The example below calculates the monthly payment for a loan of $25,000 over 60 months with a 3.11% interest rate.
$450.44 = $25,000 × (.0311/12 × (1 + .0311/12)60) ÷ ((1 + .0311/12)60−1)
Car Loan Calculator
Every car loan is the same and can be easily calculated once you have three essential variables: the car loan amount, the annual interest rate, and the number of periods or months during the term of the loan. It is possible to save hundreds if not thousands of dollars over the term of a car loan if you pay a little extra money in addition to your monthly car loan payment.