Vehicle Car Loan Equations and Calculator

Engineering Calculators

Equation and Calculator will determine the monthly payments based on interest, down payment, total loan amount

 

	Purchase price
	Down payment
	Trade-in value
	Interest rate
	Length of loan (in months)
	Monthly payment
	Total cost

The equation to calculate principal, P, interest rate, r, and number of monthly payments, m.

Payment = [P ( r / 12 )] / [1 - ( 1 + r / 12 )^-m]

For example, a 3 year (36 month) loan of $15,000 at 7% interest would look like this:

Payment = [15000 ( 0.07/ 12 )]/ [ (1 - ( 1 + 0.07 / 12 )^-36)

The payment for this vehicle will be $463.16 per month.