Car installment calculator
This car installment calculator gives your fixed monthly installment, the total interest and the total you will repay for a vehicle loan.
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $4,066.52 | $1,773.04 | $19,933.48 |
| 2 | $4,404.03 | $1,435.53 | $15,529.45 |
| 3 | $4,769.57 | $1,069.99 | $10,759.88 |
| 4 | $5,165.44 | $674.12 | $5,594.44 |
| 5 | $5,594.44 | $245.40 | $0.00 |
What an installment loan is
A car loan is an installment loan: you repay a fixed amount each month for a set number of months. Each installment covers interest for the month plus some principal. Because the installment is fixed, it is easy to budget, but a longer term lowers it at the cost of more total interest.
Choosing the number of installments
Try several term lengths in the table below. A shorter loan raises the installment but you own the car free and clear sooner, with less interest. If a lender quotes only a monthly installment, use the interest rate calculator to find the APR behind it.
$24,000 at 8% by loan length
Borrowing $24,000 at 8% over 5 years costs $486.63 a month and $5,198 in interest, $29,198 in total. Shorter terms raise the payment but cut the interest, and longer terms do the reverse. The table shows the trade-off across common terms.
| Term | Monthly payment | Total interest | Total paid |
|---|---|---|---|
| 12-month | $2,087.72 | $1,053 | $25,053 |
| 2-year | $1,085.45 | $2,051 | $26,051 |
| 3-year | $752.07 | $3,075 | $27,075 |
| 4-year | $585.91 | $4,124 | $28,124 |
| 5-year | $486.63 | $5,198 | $29,198 |
| 7-year | $374.07 | $7,422 | $31,422 |
| 10-year | $291.19 | $10,942 | $34,942 |
How your rate changes the cost
Personal loan rates vary widely with credit score, from the mid single digits for strong borrowers to 30% or more for weak credit. On $24,000 over 5 years, moving from 8% to 11% adds $2,111 in interest.
| APR | Monthly payment | Total interest |
|---|---|---|
| 5% | $452.91 | $3,175 |
| 6.5% | $469.59 | $4,175 |
| 8% | $486.63 | $5,198 |
| 9.5% | $504.04 | $6,243 |
| 11% | $521.82 | $7,309 |
How much can you borrow for a given payment?
Working backwards at 8% over 5 years, here is the loan size each monthly payment supports.
| Monthly payment | Loan amount |
|---|---|
| $200/month | $9,864 |
| $300/month | $14,796 |
| $400/month | $19,727 |
| $500/month | $24,659 |
When is half of a $24,000 loan repaid?
With a $486.63 payment, the balance falls below half ($12,000) after 33 payments, about 2.8 years into a 5 years loan. Because interest is highest at the start, the second half of the loan is paid down much faster than the first.
| After | Balance left | Paid so far |
|---|---|---|
| 1 year | $19,933 | $5,840 |
| 2 years | $15,529 | $11,679 |
| 3 years | $10,760 | $17,519 |
Frequently asked questions
Is the installment the same every month?
On a standard fixed-rate loan, yes. The split between interest and principal changes, but the total stays the same.
Can I pay more than the installment?
Usually yes. Extra payments go to principal if your lender applies them that way, shortening the loan and cutting interest.
How is a loan payment calculated?
The payment is principal × r ÷ (1 − (1 + r)^−n), where r is the monthly rate (APR ÷ 12) and n is the number of months. Each payment covers that month’s interest first, and the rest reduces the balance.
What is the difference between interest rate and APR?
The interest rate is the cost of borrowing the money. APR also includes certain fees, so it is the better number for comparing offers. This calculator treats the rate you enter as the rate that accrues on the balance.
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Estimates from standard loan formulas, not a loan offer or financial advice. Example rates are assumptions: use your own quote.