Automobile Loan Payment Calculator
to Calculate Monthly Car Payments

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Help you to estimate a vehicle's monthly payment and total interest costs, and show you how to become your own auto finance company.

This free online Automobile Loan Payment Calculator will calculate the monthly payment and total interest cost associated to an auto loan repayment.

Plus, unlike other auto loan payment calculators, the automobile loan payment calculator on this page will also calculate the number of hours you will need to allocate to working in order to repay the auto loan principal and interest.

Auto Financing Does Not Preserve Cash Reserves!

Imagine there was no such thing as credit.

How would you manage your money if you absolutely had to pay cash upfront for everything you buy?

Further suppose that the total of all of your cash on hand were $35,000. If that were true, would you consider paying cash for a $35,000 vehicle?

No? Why not? That's right, because since you can't borrow money to pay for your other necessities you could not afford to dwindle your cash reserves by such a large margin.

Well, whether you realize or not, the amount of money you will earn in your lifetime is a fixed amount (see the Lifetime Earnings Calculator for an estimate). In other words, whatever your lifetime earnings will be, that amount is what you have for lifetime cash reserves.

What most us fail to consider is that each time we buy something on credit (mortgages, loans, credit cards) the amount of our lifetime cash reserves shrinks by more than just the purchase price of what we are buying. They shrink by the purchase price plus the interest charges. (Plus the costs of ownership, but I'll save that for the Car Buying Calculator page.)

So what does this have to do with the automobile loan payment calculator?

After you calculate the monthly car payment, pay close attention to the result in the field marked "Interest cost." And then mentally multiply that number by the number of automobiles you think you will finance in your lifetime.

Two cars in your household? Then double the result. That, my friend, is a huge chunk of your lifetime cash reserves. And for what? So that lending institutions can have the nicest buildings in town?

Become Your Own Auto Finance Company

How? First, become fully aware of the hidden costs of buying and owning an automobile by using this and other calculators in the auto calculator collection.

Next, forgo higher priced vehicles that you could afford and instead purchase their lower-priced, functional equivalents.

Then, using the difference between the monthly payment of a higher priced new car and the monthly payment of a reasonably priced used car, start to make a small car payment to yourself each month in the form a deposit to your savings account. If you do that, each time you find yourself in need of more reliable transportation you will then be able finance a larger portion of the automobile loan yourself.

As your principal and interest savings add up you will eventually be able to pay cash for your automobiles. And because you'll be paying with cash that you've already worked hard to earn, I guarantee you will be far more thrifty when it comes to car buying.

With that, let's use the Automobile Loan Payment Calculator to calculate the monthly payment, total interest cost, and required work hours associated to repaying an amount of money borrowed to purchase a car.

Calculate Car Payment
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Instructions: Enter the automobile loan amount, the annual percentage rate (APR), the automobile loan term in months, and your real hourly wage (optional), then click the "Calculate Car Payment" button.

Mouse over the blue question marks for a further explanation of each entry field. More in-depth explanations can be found in the glossary of terms located beneath the Automobile Loan Payment Calculator.

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Help Automobile loan amount ($):
Help Annual percentage rate (%):
Help Automobile loan term in months (#):
Help Real hourly wage ($):
Help Monthly car payment:
Help Total of all monthly car payments:
Help Interest cost:
Help Required work hours:
Help Required 40-hour work weeks:
Please grade my work and help me improve:
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Automobile Loan Payment Calculator Glossary of Terms

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Automobile loan amount: The dollar amount of the vehicle loan (principal amount). This is usually what's left after subtracting your down payment from the total purchase price of the car.

Annual percentage rate: The annual percentage rate (APR) of the vehicle loan.

Automobile loan term in months: The term (number of monthly payments) of the vehicle loan.

Real hourly wage: If you would like the automobile loan payment calculator to calculate the number of hours you will have to work to pay off the vehicle loan, enter your real hourly wage in this field. If you don't know your Real Hourly Wage, be sure to visit the Real Hourly Wage Calculator.

Amortization schedule: This is the breakdown of each periodic payment made to repay the amount borrowed. Each line of the amortization schedule shows the total amount paid for the period, along with the portion that went to pay down the principal and the amount that was used to pay the current period interest charges. The last column is the new balance owed following that period's payment (previous balance minus principal portion of current payment). The automobile loan payment calculator allows you to choose whether or not you want the results to include a monthly amortization, an annual amortization, or no amortization schedule at all.

Monthly car payment: This how much your monthly car payment will be. Each payment includes an interest charge that is calculated by multiplying the current balance owed by the monthly interest rate (apr ÷ 100 ÷ 12). The amount left after subtracting the current interest charge will be used to lower your balance.

Total of all monthly car payments: This is the total of all of your monthly car payments. If the auto repayment term is 60 months, the total of all your monthly car payments will be 60 times the car payment (minus any difference between the monthly payment amount and final payment amount).

Interest cost: This is how much interest you will pay between now and when you finish the auto loan repayment. If you were walking through a shopping mall and saw a store named "Interest Payments," would you be tempted to go in and make a purchase? Well if you wouldn't consider buying interest payments, then why are you choosing to buy them now? Do you enjoy knowing you are helping a lending institution CEO to get a multi-million dollar year-end bonus?

Required work hours: This is how many hours you will need to allocate to working in order to pay back the auto loan principal and interest. This does not include all of the hours you will need to work to pay for the down payment and all of the upfront and ongoing costs that come with buying and owning an automobile.

Required 40-hour work weeks: This is how many 40-hour work weeks it will take you to pay back the auto loan principal and interest. Again, this does not include all of the 40-hour work weeks it will take you to pay for the down payment and all of the upfront and ongoing costs that come with buying and owning a vehicle.

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