Car Loan Calculator
A car loan calculator helps you estimate monthly auto payments, total interest costs, and complete vehicle financing details. Use our free car loan calculator to understand your monthly payment obligations, compare loan options, and make informed car buying decisions. This tool accounts for loan amount, interest rate, loan term, down payment, and trade-in value to provide accurate payment estimates. Calculate your car loan payments instantly for better budget planning and negotiation power.
Free • Instant results • Includes taxes & fees
How Car Loan Calculation Works
Car Loan Formula
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]
P = Loan Amount (Vehicle Price - Down Payment + Trade-in)
r = Monthly Interest Rate (Annual Rate ÷ 12)
n = Number of Monthly Payments
Total Cost = Monthly Payment × n + Down Payment
Example Car Loan Calculation
A $25,000 car with $5,000 down payment at 6.5% interest for 60 months results in a $387 monthly payment. Total interest paid would be $3,220, making the total vehicle cost $28,220.
This shows how interest rates and loan terms significantly impact total cost.
Benefits of Car Loan Calculation
Frequently Asked Questions
What is a good car loan interest rate?
Good car loan rates typically range from 3-5% for excellent credit, 5-8% for good credit, and 8-12% for average credit. Rates vary based on credit score, loan term, and vehicle age.
How much should I put down on a car?
Financial experts recommend 20% down payment to avoid being upside-down on your loan. Minimum 10% down payment helps secure better interest rates.
What car loan term should I choose?
Choose 48-60 month terms for lower total interest. Longer terms (72-84 months) have lower monthly payments but cost significantly more in interest over time.
Related Auto Finance Calculators
Calculate Your Car Loan Payment
Get accurate auto loan estimates including interest, taxes, and total cost for informed car buying decisions.
Use Car Loan Calculator