Auto Loan Amortization Calculator
This auto loan amortization calculator shows exactly how each car payment splits between principal and interest. Enter your loan amount, rate, and term, and the calculator above builds a full month-by-month schedule. You will see your balance drop, payment by payment, until it reaches zero. The early rows reveal a fact most drivers miss: at first, most of your money pays interest, not the car.
How it's calculated
Amortization means paying off a loan with fixed payments that slowly shrink what you owe. Each month, the lender first charges interest on your current balance. Your monthly rate is simply the APR divided by 12. Whatever is left of your payment then reduces the principal. Because your balance is highest at the start, early payments are mostly interest. As the balance falls, less interest accrues, so more of each fixed payment attacks the principal. By the final year, nearly every dollar goes to principal. The calculator above runs this math for all 60 months and lists each line for you.
A worked example
Take a $35,000 car loan at 7.5% APR over 60 months. The calculator above sets your monthly payment at $701.33. In month 1, $218.75 of that goes to interest and only $482.58 goes to principal. As the loan ages, that mix flips: each payment shifts more toward principal, and by the final year nearly all of it pays down the car. Over the full term you pay $7,080 in interest, making the total of payments $42,080.
Common mistakes to avoid
- Assuming each payment splits principal and interest evenly. Early payments are interest-heavy; the balance barely moves at first.
- Confusing APR with your monthly rate. The monthly periodic rate is the APR divided by 12, not the full APR.
- Selling or refinancing early and expecting big equity. Since early payments are mostly interest, you owe more than you think.
- Ignoring how extra payments reshape the schedule. A single extra payment cuts principal now and erases interest from the back-end months.
- Watching only the monthly payment, not the total of payments. A low payment can still hide thousands in total interest.
Frequently asked questions
What is an auto loan amortization calculator?
An auto loan amortization calculator builds a month-by-month schedule showing how each car payment splits between principal and interest, plus your remaining balance. The calculator above generates the full table once you enter your loan amount, rate, and term.
Why is most of my early car payment interest?
Interest is charged on your current balance, which is highest at the start. So early payments cover mostly interest. As the CFPB explains, more of your payment goes to principal over time as the balance falls. On a $35,000 loan at 7.5%, month 1 is $218.75 interest and $482.58 principal.
How is the monthly interest rate calculated?
Your monthly periodic rate equals the APR divided by 12. At a 7.5% APR, that is about 0.625% charged on your balance each month. The lender applies this rate before splitting your fixed payment into interest and principal.
How does an extra payment change my amortization schedule?
An extra payment goes straight to principal, lowering your balance immediately. That reduces the interest charged on every future month and erases payments from the back of the schedule. Try our extra payment calculator to see the savings.
Why do I owe so much if I sell my car early?
Because early payments are mostly interest, your principal drops slowly at first. After a year or two, your remaining balance is higher than you might expect. Check the schedule above before you sell or refinance early.