Free car loan calculator. Enter the vehicle price, down payment, rate and term to see your monthly payment, total interest and true cost.
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Enter the vehicle price, your down payment, the annual interest rate and the loan term in years. The calculator subtracts the down payment to get the financed amount, then applies the standard amortisation formula to find the fixed monthly payment that clears the loan, principal plus interest, by the end of the term. Results are estimates for planning, not financial advice, your lender's offer and fees determine the final numbers.
Car loans use standard amortisation (also spelled amortization): monthly payment = P × r ÷ (1 − (1+r)^−n), where P is the amount financed (price minus down payment), r is the monthly rate (annual rate ÷ 12) and n is the number of monthly payments. Each fixed payment first covers the interest on the remaining balance, and the rest pays down the principal, so early payments are interest-heavy while later payments are mostly principal. With a 0% rate the formula collapses to the simple P ÷ n, because there is no interest to amortise.
Start with the vehicle price, the negotiated price or sticker price before taxes, then enter your down payment. Add the annual interest rate (APR) from your lender's offer or a pre-approval, and choose the term in years; common terms run 3 to 7 years. The calculator instantly shows your monthly payment, the total interest over the life of the loan and the true all-in cost of the car, with a chart breaking principal against interest.
Stretching a loan lowers the monthly payment but raises the total interest, sometimes dramatically. On a $20,000 loan at 7%, 60 months costs about $3,761 in interest; 84 months trims the payment by roughly $80 a month but adds about $1,900 more in interest. That comparison shows why the total cost matters more than the monthly figure. Longer terms also keep you owing more than the car is worth for longer, which hurts if you sell, trade in or total the vehicle. As a rule of thumb, pick the shortest term whose monthly payment fits your budget comfortably.
Aim for at least 20% down on a new car and 10% on a used one, a bigger down payment shrinks the financed amount, which cuts both the monthly payment and the total interest. Your interest rate mostly reflects your credit profile, the loan amount and the term: better credit and shorter terms earn lower rates. Getting pre-approved before visiting the dealer turns the rate into a number you can compare rather than a surprise at signing.
Used-car loans usually carry slightly higher interest rates than new-car loans because lenders see older vehicles as riskier collateral. On the other hand, the lower price of a used car means a smaller loan, so the monthly payment is often lower anyway. Run both scenarios through the calculator, a $15,000 used car at 8% for 4 years versus a $25,000 new car at 6% for 5 years, and compare the total cost, not just the monthly figure.
This auto loan calculator applies the amortisation formula: monthly = P × r ÷ (1 − (1+r)^−n), where P is the loan amount after the down payment, r is the monthly rate (annual ÷ 12) and n is the number of payments. For example, $20,000 at 7% for 60 months gives about $396.02 a month.
Aim for 20% of the price on a new car and 10% on a used one. A larger down payment reduces the amount you finance, which lowers both the monthly payment and the total interest, and keeps you from owing more than the car is worth.
Your credit score is the biggest factor, followed by your debt-to-income ratio, the loan amount and the term. Shorter terms and larger down payments usually earn lower rates. Shopping pre-approvals from two or three lenders is the fastest way to find your real rate.
It lowers the monthly payment but raises the total interest, an 84-month loan can cost nearly $2,000 more in interest than a 60-month loan on the same car. Long terms also leave you owing more than the car's value for years. Choose the shortest term you can comfortably afford.
Put more money down, pick a shorter term, improve your credit score before applying, and shop multiple lenders for the best APR. Making extra principal payments each month also cuts the total interest, since interest is charged on the remaining balance.
A zero percent APR loan charges no interest, so you repay exactly what you borrowed. Check the fine print: these deals sometimes replace cash rebates, apply only to shorter terms, or require top-tier credit. Run the numbers both ways before choosing the 0% offer over a rebate plus a normal loan.
The interest rate is the pure cost of borrowing; the APR rolls in lender fees and charges, so it is usually slightly higher and is the better number for comparing offers. Two loans with the same interest rate can have different APRs if their fees differ. Treat this car payment estimator as a planning tool, always compare the lender's official APR before signing.
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