Car Loan Calculator
Find your monthly car payment and how much interest the loan will cost.
How to use the Car Loan Calculator
- Enter the vehicle price.
- Enter your down payment or trade-in value.
- Enter the interest rate and term.
- See your monthly payment and total interest.
Loan = Price − Down payment, then standard amortised monthly payment
About the Car Loan Calculator
This calculator takes the vehicle price, subtracts your down payment or trade-in, and amortises the balance over the term you choose using the standard fixed-instalment formula — the same maths a lender uses to set a monthly payment. It shows the monthly figure, the total interest, and the total of all payments across the loan.
Car finance is where term length quietly costs money. Stretching a loan lowers the monthly payment but raises total interest, and because a vehicle can depreciate faster than a long loan pays down principal, a longer term also extends the stretch of time you owe more than the car is worth. Comparing the total-of-payments figure across two terms shows that trade-off in currency rather than percentages.
What it leaves out: this is principal and interest on the amount financed, nothing else. It does not include sales tax on the purchase, registration and title fees, dealer documentation charges, insurance, extended warranties or GAP cover — and dealers often roll such items into the financed balance, which raises the real payment above this figure. It assumes a fixed rate with equal payments throughout and no balloon or final payment. The mortgage calculator uses the same engine over a longer term, and the loan calculator handles borrowing generally.
Frequently asked questions
Does a trade-in count as a down payment?
Yes. Add the trade-in value you are being credited to any cash you are putting down, and enter the combined total in the down payment field. If you still owe money on the trade-in, subtract that balance first — negative equity rolled into the new loan increases the amount financed.
Should I take a longer term for a lower payment?
That is your call, but the trade-off is worth seeing plainly: a longer term lowers the monthly payment and raises the total interest, and it keeps you owing on the car for longer. Run both terms and compare the total-of-payments figure alongside the monthly one.
Does it include tax, fees and insurance?
No. It calculates principal and interest on the amount financed. Sales tax, registration, dealer fees, insurance and any add-ons are extra — and if they are financed rather than paid up front, add them to the price before calculating.
How do I model 0% dealer finance?
Enter 0 as the rate. The payment then becomes the financed balance divided by the number of months, with no interest at all. Be aware that 0% offers are sometimes offered instead of a cash rebate, so it is worth comparing the 0% deal against a lower price financed at a normal rate.
What does it mean to be underwater on a car loan?
It means the outstanding balance is larger than the car is worth, which can happen when a long term is paired with a small down payment. This calculator shows the loan side of that picture but does not estimate the vehicle’s depreciation.
Guides & articles about this tool
How Loan EMI Is Calculated (With a Worked Example)
This is how EMI works: each month you make a single fixed payment covering both the interest owed and part of the loan itself. Below we break down the for…