Automotive

Car Loan Payment Calculator

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Understanding auto loan payments helps you make smart financing decisions. Calculate fixed monthly payments using the French amortization method, where your payment stays constant while the principal you pay increases each month. Free, instant, and accurate for 2026.

Last reviewed: May 12, 2026 Verified by Hacé Cuentas Team Source: NIST — National Institute of Standards and Technology, Khan Academy, Wolfram MathWorld 100% private

When to use this calculator

  • Calculate monthly car loan payments quickly
  • Compare loan terms and interest rates
  • Validate loan calculations before financing
  • Educational reference for finance students
  • Personal finance planning and decision-making

Example Calculation

  1. $15,000, 60 months, 12%
  2. ~$334
Result: ~$334 per month

How it works

1 min read

How Car Loan Payments Work

The French amortization method is the most common system for auto loans. Your monthly payment stays fixed, but the breakdown of principal and interest changes each month — early payments have more interest, later payments have more principal.

How to Calculate

This calculator applies the standard formula with your inputs, checking for realistic values and alerting you to unusual amounts.

The French Method Explained

  • Constant Payment: Your monthly payment amount never changes

  • Growing Principal: Each month you pay down more of the original loan

  • Decreasing Interest: As principal decreases, interest charges decline
  • Important Notes

    This calculator provides estimates for reference. For critical financial decisions, consult with a loan officer or financial advisor. Values are current to 2026.

    Frequently asked questions

    What is French amortization?

    French amortization means you pay a constant monthly amount, but the portion going toward principal grows each month while interest portion shrinks.

    How is my monthly payment calculated?

    The formula is C = V × i(1+i)^n/((1+i)^n-1), where V is the loan amount, i is the monthly interest rate, and n is the number of months.

    What's the difference between APR and APY?

    APR is the annual interest rate (what you enter). APY accounts for compound interest. APY = (1+APR/12)^12 - 1.

    Can I pay off my loan early?

    Yes. Early payoff reduces your total interest paid. Check with your lender about prepayment penalties.

    What's the difference between constant payment and constant principal?

    French method: constant payment, growing principal. German method: constant principal, shrinking payment. Most auto loans use French.

    Is this calculator free?

    Yes, all our calculators are free and require no registration or sign-up.

    Are the results accurate?

    Results are estimates using standard formulas validated internationally. For loan origination, verify with your lender.

    Is my data saved or shared?

    No. All calculations happen in your browser. We don't store or send your data to any server.

    Sources and references