How the Auto Loan Calculator works
Car dealers negotiate on the monthly payment because stretching a loan from 48 to 84 months makes almost any car look affordable. Run both terms here and compare the total interest column — that is the number the payment hides.
Payment = P × r ÷ (1 − (1 + r)^−n), where P is the amount borrowed, r is the monthly rate (APR ÷ 12) and n is the number of monthly payments.