Car Loan Calculator
Estimate the monthly payment and total cost of financing a car after your down payment.
%
months
30,057
Paid on loanAmount financed
83.2%
Total interest
16.8%
- 1
Amount financed
30,000 − 5,000 = 25,000 - 2
Monthly interest rate
r = 7.5% ÷ 12 ÷ 100 = 0.00625 - 3
Growth factor
(1+r)ⁿ = 1.00625ⁿ = 1.4533How much one unit of principal grows over the full term at the monthly rate. - 4
Monthly payment
25,000 × 0.00625 × 1.4533 ÷ (1.4533 − 1) = 500.95
Formula
How this is calculated
The calculator first finds the amount financed (the principal P) by subtracting your down payment from the vehicle price — this is the part of the purchase you actually borrow. The annual interest rate you enter is a nominal APR, which is divided by 12 and by 100 to get the monthly rate r, and the loan term in months becomes the number of payments n.
It then applies the standard fixed-rate amortization formula, payment = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), to find the constant monthly instalment that pays the loan off exactly in n months. Each payment covers that month's interest first, with the rest reducing the balance, so early payments are mostly interest and later ones mostly principal. Total interest is the sum of all payments minus the principal, and total cost adds your down payment back in. If the rate is 0%, the payment is simply P ÷ n.
All figures are in the currency you enter. The model assumes a fixed rate and on-time monthly payments, and excludes sales tax, registration, fees, insurance and any trade-in beyond the down payment.
Examples
| Input | Result |
|---|---|
| $25,000 loan, 7% annual rate, 5-year term | Monthly payment $495.03; total repaid $29,701.80; total interest $4,701.80 |
| $30,000 loan, 5% annual rate, 6-year term | Monthly payment $483.15; total repaid $34,786.65; total interest $4,786.65 |
| $25,000 loan at 7%, comparing term length | Over 5 years the payment is $495.03 with $4,701.80 interest; stretching the term lowers the payment but raises total interest |
About this calculator
A car loan calculator estimates the monthly payment on an auto loan and the total cost of financing a vehicle. A car loan is an installment loan secured by the vehicle, repaid in equal monthly amounts over a set term, commonly three to seven years, with the car serving as collateral until the balance is cleared.
It applies the standard amortization formula, payment = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the amount financed (vehicle price minus down payment and trade-in), r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. Each payment covers that month's interest first, with the rest reducing the principal until the loan is paid off.
To use the calculator, enter the loan amount (after any down payment), the annual interest rate or APR, and the term in years or months. The tool returns your fixed monthly payment, the total amount repaid, and the total interest. Adjust the down payment or term to see how they change your monthly cost and the overall price of borrowing.
Read the monthly payment as your recurring budget commitment and the total interest as the premium you pay for financing rather than buying outright. A longer term lowers the monthly payment but increases total interest and the risk of owing more than the car is worth, since vehicles depreciate quickly. A larger down payment reduces both the payment and the interest.
A common mistake is focusing only on the monthly payment and ignoring total interest, which lets long terms hide a high cost. This calculator covers principal and interest only; remember that ownership also brings taxes, registration, insurance, and maintenance. Confirm whether your quoted rate is the APR, which includes certain fees, for the most accurate comparison.
Frequently asked questions
A longer term lowers the monthly payment but raises total interest, and because cars depreciate fast, you may owe more than the car is worth for much of the loan. If you can afford a higher payment, a shorter term saves money and builds equity faster.
A down payment reduces the amount financed, which lowers both your monthly payment and total interest. It also reduces the risk of going underwater on the loan. Even a modest down payment can meaningfully cut the lifetime cost of the loan.
The interest rate is the cost of borrowing the principal, while the APR also folds in certain lender fees, giving a fuller picture of the loan's cost. Compare offers by APR when possible; enter the APR here for a closer estimate of true cost.
No, it calculates only principal and interest on the financed amount. Sales tax, registration, title fees, insurance, and maintenance are separate ownership costs. Budget for those on top of the monthly payment this calculator shows.
Usually yes, and doing so saves interest by reducing the principal sooner. Check whether your lender charges a prepayment penalty first. If you make extra payments, recalculate with the lower balance to see your shortened term or reduced future interest.
It means you owe more on the loan than the car is currently worth, which happens easily with long terms and small down payments because cars depreciate quickly. A larger down payment and shorter term reduce the time you spend underwater.
Also known as
TG we-Calculate Editorial Team. (2026). Car Loan Calculator [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/car-loan-calculator
TG we-Calculate Editorial Team. "Car Loan Calculator." TG we-Calculate. 2026. https://we-calculate.com/calculator/car-loan-calculator.
TG we-Calculate Editorial Team, "Car Loan Calculator," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/car-loan-calculator
@misc{wecalculate_car_loan_calculator, title = {Car Loan Calculator}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/car-loan-calculator}}, year = {2026}, note = {TG we-Calculate} }
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