Auto Loan Calculator
Last updated: 2026-06-25
The auto loan monthly payment uses the amortizing method: payment = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1) (P = price − down payment, r = annual rate ÷ 12, n = months).
A larger down payment and a shorter term reduce total interest. A lease and a rental differ in ownership and cost structure.
Enter Loan Terms
Monthly payment (amortizing)
0 won
| Item | Amount |
|---|---|
| Loan principal (price − down payment) | |
| Monthly payment | |
| Total repayment (excl. down payment) | |
| Total interest |
This is an estimate for reference. Handling fees, guarantee insurance, and residual-value (balloon) financing are not included, and actual terms vary by lender.
How to Use
- Enter price and down payment — enter the car price and the down payment (initial payment).
- Enter rate and term — enter the annual interest rate (%) and loan term (months).
- Check the result — press Calculate to see the amortizing monthly payment, total repayment, and total interest.
How an Auto Loan Works and How Lease/Rental Differ
An auto loan usually repays the same amount each month using the amortizing method. The monthly payment formula is P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the loan principal (price minus down payment), r is the monthly rate (annual rate ÷ 12), and n is the number of months. At a 0% annual rate, the monthly payment is simply the principal ÷ months.
| Type | Ownership | Notes |
|---|---|---|
| Loan | Buyer (you) | Repay the price in installments; the car is in your name. You pay vehicle tax and insurance. |
| Lease | Finance company | Pay a monthly usage fee; at maturity, buy out, return, or re-lease. Lower upfront cost. |
| Long-term rental | Rental company | Bundled service with insurance and maintenance. Uses rental-car license plates. |
Increasing the down payment or shortening the term reduces total interest. Check the acquisition tax due at purchase with the car acquisition tax calculator, and the value drop after purchase with the car depreciation calculator.
Frequently Asked Questions (FAQ)
How is the auto loan monthly payment calculated?
The monthly payment uses the amortizing (fixed-payment) method. The formula is payment = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the loan principal (price − down payment), r is the monthly rate (annual rate ÷ 12), and n is the number of months. You pay the same amount each month.
What happens with a larger down payment?
A larger down payment reduces the loan principal, lowering both the monthly payment and total interest. For example, a 6,000,000 won down payment on a 30,000,000 won car means you only borrow 24,000,000 won, reducing the interest burden.
How do a loan, a lease, and a rental differ?
With a loan, you own the car in your name and repay the price in installments. With a lease, the finance company owns the car and you pay a monthly usage fee. A long-term rental is a bundled service that includes insurance and maintenance. They differ in ownership and in tax and insurance handling.
Is 0% interest financing really interest-free?
Interest-free financing has no nominal interest, but discounts may shrink or cost may be built into the price, so it's worth weighing the real cost. Entering 0% annual rate in this calculator makes the monthly payment simply the principal ÷ months.
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Last updated: 2026-06-25