Calculators · Ownership

Car and equipment loan calculator

A loan’s monthly payment depends on the amount borrowed, the interest rate and the term — and on whether a large final (balloon) payment is left to the end. These calculators give the monthly payment and total interest, the effect of a balloon payment, and how much you can borrow for a monthly budget. They apply equally to cars, trucks and machinery. Figures are estimates for planning; lenders’ fees and exact terms vary, and this is not financial advice.

Monthly payment and total interest

Calculates the fixed monthly payment that repays a loan over its term, using the standard amortisation formula, and the total interest paid. A longer term lowers the payment but raises the total interest.

Results
Monthly payment—currencyFixed payment each month.
Total interest—currencyTotal paid minus the amount borrowed.
Total repaid—currencyAll payments added together.

Formula
r = annual rate / 12
payment = P × r / (1 − (1 + r)^−n)

Loan with a balloon payment

A balloon (final) payment lowers the monthly instalments by leaving part of the loan to repay at the end, often by selling or refinancing the vehicle. The total interest is higher, because more of the loan stays outstanding for longer.

Results
Monthly payment—currencyPayment each month before the balloon.
Total interest—currencyMonthly payments plus balloon, minus the amount borrowed.

Formula
payment = (P − B / (1 + r)^n) × r / (1 − (1 + r)^−n)

How much can I borrow?

Reverses the payment formula: from a monthly budget, rate and term, it gives the largest loan you could repay. Add your deposit to find the price you can afford.

Results
Maximum loan—currencyLargest amount the budget can repay.
Affordable price—currencyMaximum loan plus deposit.

Formula
loan = payment × (1 − (1 + r)^−n) / r

Worked example: financing 20,000 over five years

  1. At 6% a year the monthly rate is 0.5%; 60 payments of 386.66 repay 20,000.
  2. Total repaid is 23,199, so the interest is 3,199.
  3. With a 6,000 balloon the payment drops to 300.66, but total interest rises to about 4,040.
  4. A budget of 400 a month at the same terms supports a loan of about 20,690.

Monthly payment per 10,000 borrowed

Rate36 months48 months60 months72 months
3%290.81221.34179.69151.94
6%304.22234.85193.33165.73
9%318.00248.85207.58180.26

Related

About these results

Results are theoretical estimates from standard engineering formulas. Real-world figures depend on conditions these formulas do not capture. Always follow the manufacturer's specifications for maintenance, loading and safety decisions.