Auto Loan Calculator – Formula & Examples

Period	Principal paid	Interest paid	Balance
Year 1	5,464.19	2,002.84	26,035.81
Year 2	5,853.37	1,613.66	20,182.44
Year 3	6,270.28	1,196.75	13,912.16
Year 4	6,716.88	750.16	7,195.28
Year 5	7,195.28	271.75	0

Period

Principal paid

Interest paid

Balance

Year 1

5,464.19

2,002.84

26,035.81

Year 2

5,853.37

1,613.66

20,182.44

Year 3

6,270.28

1,196.75

13,912.16

Year 4

6,716.88

750.16

7,195.28

Year 5

7,195.28

271.75

About the Auto Loan Calculator

Car loan payment calculator: monthly payment, total interest and amount financed after your down payment.

Also known as: car loan calculator, car loan emi, vehicle loan calculator, auto finance calculator.

How to use this calculator

Enter vehicle price, down payment, interest rate (annual), loan term.
The result updates instantly as you type — press Calculate (or Enter) at any time.
Review the breakdown shown under the main result.
Use Copy result or Share to save the answer or send a link with your inputs.

Formula

EMI = P·r·(1 + r)ⁿ / ((1 + r)ⁿ − 1)

P: = principal borrowed
r: = monthly rate = annual rate ÷ 12
n: = number of monthly payments

Worked example

Using the values pre-filled in the calculator above:

Vehicle price = 35,000
Down payment = 3,500
Interest rate (annual) = 6.9 %
Loan term = 5 years

the calculator returns:

Monthly payment (EMI): 622.25
Total interest: 5,835.16
Total repayment: 37,335.16
Amount financed: 31,500

Frequently asked questions

How is the monthly payment calculated?

With the standard amortization (EMI) formula M = P·r·(1 + r)ⁿ / ((1 + r)ⁿ − 1), where P is the loan amount, r the monthly interest rate (annual rate ÷ 12) and n the number of monthly payments.

Why is most of the early payment interest?

Interest is charged on the outstanding balance, which is highest at the start. As the balance falls, more of each fixed payment goes to principal.