Although not the only thing interest rates are very much the most important thing that affects how much you pay on a car loan besides the cost of the car itself. To calculate the monthly payment on an auto loan use this. A car loan payment calculator shows you exactly what happens if you pay more each time you make a car payment or what will happen if you make extra payments.
Amortized Loan Payment Formula Calculate your monthly payment p using your principal balance or total loan amount a periodic interest rate r which is your annual rate divided by the number of payment periods and your total number of payment periods n.
To calculate the estimated APR on a car loan weve put together a method using computer spreadsheet software. You can find this information on your monthly statement. P Principal Amount on the Loan. The payment on a loan can also be calculated by dividing the original loan amount PV by the present value interest factor of an annuity based on the term and interest rate of the loan.