Car Loan Monthly Repayment Calculator
Calculate the monthly repayment on a car loan and the total interest over its life. Enter the loan amount, annual interest rate, and term in months, and this calculator returns the monthly EMI, total payable, and total interest.
Formula
r = Annual Rate / 12 / 100
EMI = Loan × r × (1+r)^n / ((1+r)^n − 1)
Total Interest = EMI × n − Loan
- The monthly rate r is the annual rate divided by 12 and by 100.
- EMI uses the amortization formula over n months, keeping payments level.
- Total amount payable = EMI × number of months.
- Total interest = total payable − the original loan amount.
- A longer term lowers the monthly payment but increases total interest.
- Enter the amount in your local currency and the rate as a plain percentage (e.g. 8 for 8%).
$18,000 loan, 8% / 60 months
Inputs
- Loan Amount: 18000
- Annual Interest Rate: 8 %
- Loan Term: 60 months
Monthly rate = 8 ÷ 12 ÷ 100 = 0.006667. EMI ≈ $365, total payable ≈ $21,898, and total interest ≈ $3,898 over five years.
Frequently asked questions
How is my car loan repayment calculated?
It uses the amortization formula: the loan, the monthly interest rate, and the number of months produce a level monthly payment that clears the loan by the end of the term.
Why do I pay more interest with a longer term?
A longer term means the balance is outstanding for more months, so interest accrues for longer. The monthly payment drops, but total interest rises.
What happens if the rate is 0%?
With no interest, the repayment is simply the loan divided by the number of months, and total interest is zero.
Can I reduce my total interest?
Yes — borrow less, pick a shorter term, find a lower rate, or make extra payments to cut the balance faster.