Automotive calculators

Car Amortization Calculator

Updated Aug 24, 2026 By Jehan Wadia
Rate Formulas

Vehicle & Loan Details

Up to 2 decimal places (e.g. 6.25%).
Up to 3 decimal places (e.g. 6.499%).
Defaults to the month after today.
Financed Amount (Vehicle Price × (1 + Sales Tax%)) − Down Payment − Trade-In Value. This is the principal your monthly payment is based on.
$29,000.00
Price + tax $34,000.00 − down $5,000.00 − trade-in $2,000.00

Loan Summary

Monthly Payment Your fixed monthly installment of principal plus interest, based on the financed amount, APR, and term. Insurance, registration, and fees are not included.
$567.32
60 payments starting September 2026
Total Interest Paid Every dollar of interest you'll pay the lender across the life of the loan, on top of the amount financed.
$0.00
Total Amount Paid Principal plus interest — the full amount that leaves your bank account over the loan term.
$0.00
Loan Payoff Date The calendar month of your final payment — First Payment Date plus the loan term, minus one month.
—
Effective Total Vehicle Cost This is what the car truly costs you, including purchase price, sales tax, and all interest paid over the loan. It gives you a complete picture beyond just the sticker price.
$0.00

Where Your Total Payments Go

Principal: $0.00 (0.00%)
Interest: $0.00 (0.00%)

Step-by-Step Solution

Loan Visualizations

Remaining balance over time.

Amortization Schedule

Month-by-month amortization schedule with an annual summary row after each calendar year. This table is the accessible text alternative to the charts above.
Payment # Payment Date Payment Amount Principal Paid Interest Paid Remaining Balance

Introduction

This car amortization calculator shows you what a car loan really costs. Type in the car price, your down payment, your trade-in value, the sales tax, the interest rate (APR), and how many months you want to pay. The calculator does the rest.

You get your monthly car payment, the total interest you will pay, your payoff date, and the true total cost of the car. You also get a full amortization schedule. That is a month-by-month list that shows how much of each payment goes to the loan (principal) and how much goes to interest. Early on, more of your money goes to interest. Later, more of it pays down the car.

Two charts help you see it fast. One shows your balance dropping to zero. The other shows the split between principal and interest each month. You can also download the schedule as a CSV or Excel file to save or print.

Try changing the term or the down payment. A longer loan means a smaller monthly payment, but you pay more interest in the end. A bigger down payment or trade-in lowers both. Use this tool before you sign at the dealership so you know the numbers first, and compare the result against a full auto loan calculator or a car lease calculator if you are still deciding how to pay.

How to use our Car Amortization Calculator

Enter your car price, cash down, trade-in, tax rate, interest rate, loan length, and start date. The calculator shows your monthly car payment, total interest, total amount paid, payoff date, the true cost of the car, and a full month-by-month amortization schedule you can download.

Vehicle Price: Type the price you agreed to pay for the car, before tax and before any money down. Not sure what a fair number looks like? Check a car price calculator or an out the door price calculator first.

Down Payment: Type the cash you will pay up front at signing. It must be less than the car price. Put 0 if you pay nothing down. A down payment calculator can help you pick a target amount.

Trade-In Value: Type what the dealer will give you for your old car. Put 0 if you are not trading one in. Use a trade in value calculator or a used car value calculator to check the dealer's offer.

Sales Tax: Type your state and local tax rate as a percent, like 6.25. The tax is added to the price and rolled into the loan. A sales tax calculator shows the rate math on its own.

Interest Rate (APR): Type the yearly rate your lender gave you, like 6.5. If you don't know it yet, use a rate from a loan offer or a rate quote, or work backward with a car loan interest rate calculator.

Loan Term: Pick how many months you will pay, from 12 to 84. A longer term lowers the monthly payment but costs more interest.

First Payment Date: Pick the month your first payment is due. This sets the dates in your schedule and your payoff month.

The results update as you type. Click Calculate to refresh them, or Reset to start over with the default numbers.

What Is Car Loan Amortization?

Amortization is the way a car loan gets paid off, one month at a time. Each payment you make is split into two parts: interest (the fee the lender charges) and principal (the money that lowers what you owe). Your payment stays the same every month, but the split changes. Early on, most of the money goes to interest. Later, most of it goes to principal. When the last payment is made, the loan hits zero and the car is fully yours. The same math drives home loans too, which you can see in our mortgage amortization calculator or the general amortization calculator.

What Goes Into a Car Loan

  • Vehicle price: the price you agree to pay for the car.
  • Sales tax: a percent added by your state or city. Most buyers roll this into the loan.
  • Down payment: cash you pay up front. More cash down means a smaller loan.
  • Trade-in value: what the dealer gives you for your old car. It cuts the loan just like cash.
  • APR: your yearly interest rate. A lower APR saves you real money — see how it is built in the APR calculator.
  • Loan term: how many months you pay, usually 36 to 84.

The money you actually borrow is called the amount financed. It equals the price plus tax, minus your down payment and trade-in. Dealer fees and title costs can be added too; a DMV fee calculator gives you a ballpark for those.

How Your Monthly Payment Is Found

Lenders use one standard formula:

M = P × r(1 + r)n ÷ [(1 + r)n − 1]

Here, M is the monthly payment, P is the amount financed, r is the APR divided by 12, and n is the number of months. Each month, the lender charges interest on the balance you still owe. Whatever is left of your payment knocks down the balance. This is the same engine behind our loan payment calculator and car interest calculator.

Why Loan Term Matters So Much

A longer term makes the monthly payment smaller, which feels good. But you pay interest for more years, so the car costs more in the end. A 72- or 84-month loan can also leave you upside down, meaning you owe more than the car is worth, because cars lose value fast in the first few years. Run your model through a car depreciation calculator to see how quickly value drops. A shorter term costs more each month but saves a lot of interest — a loan comparison calculator lets you line up two terms side by side.

Ways to Pay Less Interest

Buying vs. Leasing

A loan builds ownership. Every principal dollar is equity you keep. A lease is different: you pay for the car's drop in value plus a rent charge, and you give the car back at the end. That rent charge comes from the money factor, and the depreciation piece comes from the residual value — both are handled in our lease calculator. Leases often have lower monthly payments and mileage limits, but you own nothing when the term is up. If you plan to keep a car for many years, a loan usually costs less over time. Buying used changes the math again; try the used car loan calculator to compare.

Costs This Calculator Does Not Include

Your real monthly car budget is bigger than the loan payment. Plan for insurance, registration and title fees, dealer doc fees, gas or charging, tires, and repairs. Keep an eye on your gas mileage too, since fuel is often the second biggest line item. Many buyers use the rule that all car costs should stay under about 15% to 20% of take-home pay — a car affordability calculator or a monthly budget calculator can confirm the payment fits.

Formulas used

Sales Tax Amount
\text{Tax} = \text{Price} \times \frac{t}{100}
Amount Financed (Loan Principal)
P = (\text{Price} + \text{Tax}) - \text{Down Payment} - \text{Trade-In}
Monthly Interest Rate
r = \frac{\text{APR}/100}{12}
Monthly Payment
M = \frac{P \cdot r (1 + r)^{n}}{(1 + r)^{n} - 1} \quad (r > 0), \qquad M = \frac{P}{n} \quad (r = 0)
Monthly Interest and Principal Portions
I_i = B_{i-1} \times r, \qquad P_i = M - I_i, \qquad B_i = B_{i-1} - P_i
Total Paid and Total Interest
\text{Total Paid} = \sum_{i=1}^{n} M_i, \qquad \text{Total Interest} = \text{Total Paid} - P
Effective Total Vehicle Cost
\text{Effective Cost} = \text{Price} + \text{Tax} + \text{Total Interest}
Principal vs. Interest Share of Payments
\text{Principal \%} = \frac{P}{\text{Total Paid}} \times 100, \qquad \text{Interest \%} = 100 - \text{Principal \%}

Frequently asked questions

Why does most of my first payment go to interest?

Interest is charged on what you still owe. At the start, you owe the most, so the interest part is big. As the balance drops, the interest part shrinks and more of each payment pays down the car. Your payment amount never changes, only the split.

Does this calculator include dealer fees, title, or registration?

No. It uses only the car price, sales tax, down payment, and trade-in. If you want fees included, add them to the Vehicle Price box. Doc fees, title, and plates often add a few hundred dollars.

Does the calculator give a tax credit for my trade-in?

No. It charges tax on the full car price, then subtracts your trade-in. Some states only tax the price after the trade-in. If your state does that, lower the Vehicle Price by your trade-in amount to match your state's rule.

What does Effective Total Vehicle Cost mean?

It is the car price plus sales tax plus all the interest you pay. It shows the real price of the car, not just the sticker. Your down payment and trade-in are part of that total since they still come out of your pocket.

Why is my dealer's monthly payment different from this one?

Dealers often add fees, gap insurance, warranties, or a service plan to the loan. Their tax rule may differ too. Compare the amount financed on their paperwork to the one here. If the numbers match, the payments will match.

Why is the last payment a little different?

Every month is rounded to the nearest cent. Those tiny bits add up over the term. The final payment is adjusted so the balance lands on exactly $0.00. Real lenders do the same thing.

Can I add extra payments to see a faster payoff?

Not in this tool. It shows a fixed payment schedule. To test extra payments, pick a shorter loan term and compare the totals, or use an extra payment calculator.

What happens if I put 0% for the APR?

The calculator splits the amount financed evenly across your months, with no interest at all. You will see a note reminding you to double-check the rate. Some dealers do offer 0% deals on new cars.

What if my down payment and trade-in cover the whole price?

Then you do not need a loan. The calculator hides the results and shows a green message instead. Lower the down payment or trade-in if you still want to see a loan schedule.

Can I use this for a used car, truck, or motorcycle?

Yes. The math is the same for any fixed-rate loan. Just enter the right price, rate, and term. Used car rates are usually higher than new car rates, so check your loan offer.

What if I owe more on my trade-in than it is worth?

That is called negative equity. This tool does not have a box for it. Add the leftover amount you owe to the Vehicle Price, since that debt gets rolled into your new loan.

What are the annual summary rows in the schedule?

After each calendar year, a shaded row totals the payments, principal, and interest for that year, plus the balance left. It is handy for taxes, budgets, or seeing progress year by year.

Can I save or print the amortization schedule?

Yes. Click Download CSV for a simple file, or Download Excel for a formatted spreadsheet. Both include your loan details and every month of the schedule.

How do I read the balance chart?

The line starts at your amount financed and drops to zero on your payoff month. Markers show the loan start, the point where half your principal is paid, and the payoff. The drop is slow at first and faster near the end.

Does the first payment date change how much interest I pay?

No. It only sets the calendar dates and your payoff month. Your payment and total interest stay the same. Real lenders may charge a few extra days of interest if your first payment is far out.

Why does the calculator stop at 84 months?

84 months, or 7 years, is the longest term most auto lenders offer. Loans that long cost a lot of extra interest and often leave you owing more than the car is worth.

Is my information saved anywhere?

No. Everything runs in your browser. Nothing is sent or stored. Refresh the page and it goes back to the default numbers.

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