🚗

Car Loan Calculator

Calculate monthly payments and total costs for your auto loan

$
$
$
%
years
%
$
Registration, documentation, extended warranty, etc.

💡Loan Tips

Shop around: Compare rates from multiple lenders
Improve credit: Higher scores get better rates
Larger down payment: Reduces loan amount and interest
Shorter terms: Higher payments but less total interest

📊Typical Auto Loan Terms

New Cars2-7 years
Used Cars2-5 years
Typical Rate3-8%
Down Payment10-20%

⚠️Hidden Costs

• Insurance premiums
• Registration and license fees
• Maintenance and repairs
• Depreciation

Auto Loan Payment Calculator Guide

A car loan calculator computes monthly payment, total interest, and amortization using loan amount, APR, and term. You can model fees, sales tax, and extra payments to see the total cost of ownership.

What is Car Loan Calculator?

The car loan calculator helps buyers plan financing for new or used vehicles. It shows how term length and APR change monthly payments and lifetime interest, and it can simulate extra payments for faster payoff.

How to Use the Car Loan Calculator

  1. Enter price and down payment (or trade). Add fees and taxes if rolling into the loan.
  2. Set APR and term (months).
  3. Compute monthly payment and view amortization.
  4. Optional: add extra monthly or one-off payments to see interest savings and payoff date.
  5. Compare scenarios (shorter term vs lower down vs lower APR).

Formulas & Methods

  • Monthly rate: r = APR / 12 (decimal)
  • Payment: PMT = P*r / (1 - (1 + r)^(-n))
  • Remaining balance after k payments: B_k = P*(1 + r)^k - PMT*((1 + r)^k - 1)/r
  • Total interest: PMT*n - P

Assumptions & limitations

  • Uses nominal APR with monthly compounding.
  • Late fees, prepayment penalties, and credit add-ons are not included unless entered in principal.
  • Taxes/fees vary by location.

Examples

Example A — Standard loan
Price $28,000, down $3,000, fees $500 financed -> P = 25,500. APR 5.49%, term 60.
r = 0.0549/12 ~ 0.004575 -> PMT ~ 25,500*0.004575 / (1 - (1.004575)^(-60)) ~ $488.35.
Total paid ~ $29,301; interest ~ $3,801.

Example B — Extra $50/mo
Same loan with +$50 monthly -> payoff about 4 months sooner and ~$500 interest saved (illustrative; tool computes exact values).

| Scenario | Payment | Total Interest | |---|---:|---:| | 60 mo @ 5.49% | ~$488 | ~$3,801 | | 48 mo @ 4.99% | higher | much less |

Pro Tips & Best Practices

  • Aim for shorter terms you can afford; avoid being upside-down as the car depreciates.
  • Improve credit score or use a co-signer to seek lower APRs.
  • Put taxes/fees up front if possible to reduce interest cost.
  • Check for GAP coverage if down payment is small.

Related Calculators

FAQ

Q: How is a car loan payment calculated?

A: Payment = P*r / (1 - (1 + r)^(-n)), where P is principal, r monthly rate (APR/12), n number of months.

Q: What term should I pick?

A: Shorter terms mean higher payments but much less interest paid; match term to budget and vehicle life.

Q: Can I add extra payments?

A: Yes—the calculator can show interest saved and earlier payoff with one-off or monthly extra payments.

Q: What about sales tax and fees?

A: Include them in the financed amount or pay up front; rolling them in increases interest cost.

Q: Is there a prepayment penalty?

A: Some loans charge one; check your contract.

Compliance note: This article is for information only and not financial advice.

Call to Action

Enter price, down payment, APR, and term—then test extra payments to see how quickly you can own the car outright.