About the Car Loan Calculator
This Car Loan Calculator estimates your monthly auto payment, total interest, and total paid based on loan amount, APR, and term. It’s designed for dealership purchases and private‑party financing alike so you can compare offers, evaluate affordability, and avoid surprises at signing. Enter the vehicle price, subtract any down payment and trade‑in credits to determine the financed amount, then set your APR and term in months.
Auto loans are amortized, which means each fixed payment contains both interest and principal. Early payments are interest‑heavy; over time, more of your payment goes toward principal reduction. Use this tool to test scenarios—larger down payments, shorter terms, or lower APRs—and see how they affect the monthly payment and lifetime interest cost. You can also compare lender offers by focusing on APR, not just the sticker rate.
When budgeting, include insurance premiums, registration fees, maintenance, fuel, and taxes—your true cost of ownership exceeds the loan payment. If you’re trading in a vehicle, understand your equity position; negative equity rolled into a new loan increases both the payment and the total interest paid.
Key features
- Monthly payment, total interest, and total paid breakdown
- Scenario testing for APR, term length, and down payment
- Amortization‑based accuracy using the standard installment formula
- Works for dealership and private‑party car purchases
- Great for comparing pre‑approval vs. dealer financing
How to use
- Enter the car loan amount (price minus down payment and trade-in).
- Enter the APR and the loan term in months.
- Review the monthly payment, total interest, and total paid.
Formula
Payment = P × [ r(1 + r)n ] / [ (1 + r)n − 1 ] where P is principal, r is monthly rate, n is months.
Variables
| Symbol | Meaning |
|---|---|
| P | Financed amount after down payment and trade‑in |
| r | Monthly interest rate (APR ÷ 12 ÷ 100) |
| n | Loan term in months |
Examples
- Financing $24,000 at 6.9% for 60 months results in a fixed monthly payment and a predictable payoff schedule.
- Increasing the down payment lowers both the monthly payment and total interest paid.
- Shortening the term from 72 to 48 months raises the payment but can save thousands in interest.
Tips
- Shop APRs from banks/credit unions before visiting the dealer for leverage.
- Avoid very long terms (72–84 months) when possible; they often lead to higher total interest and negative equity.
- Check for prepayment penalties; paying extra principal can shorten your term and reduce interest.
- Compare out‑the‑door prices, not just monthly payments, to prevent hidden add‑ons.