Car Loan Calculator
Free car loan calculator — work out the monthly payment, total cost and total interest on an auto loan from the price, interest rate, and term in years. Runs in your browser.
The monthly payment on a fixed-rate car loan depends on three things only: the amount financed, the APR, and the term in years. The calculator uses the standard amortizing-loan formula and returns the monthly payment, the total amount you’ll pay, and how much of that is interest.
What goes into “loan amount”
Type the amount you’re actually borrowing — that’s the negotiated sale price plus tax, title and dealer fees, minus your down payment and any trade-in credit. If the dealer is rolling fees into the financing, include them; if you’re paying them in cash up front, don’t.
How term length affects total cost
Stretching the loan to 6 or 7 years cuts the monthly payment, but you pay more total interest and you risk being upside down — owing more than the car is worth, since vehicles depreciate fast in the first few years. Run a 4-, 5-, and 6-year scenario and look at the total interest row before committing.
0% APR vs. a cash rebate
Common manufacturer trade-off: a low-or-zero APR financing offer, or a cash rebate. Run the numbers both ways. Use the calculator on the price after the rebate at your usual rate, and on the full price at the promotional rate. Pick the smaller total cost.
Worked examples
-
$35,000 car loan at 7% APR over 5 years
Monthly payment: $693.04 — total $41,582.52 over 5 years (interest: $6,582.52).
-
$20,000 used-car loan at 5.5% APR over 6 years
Monthly payment: $326.76 — total $23,526.56 over 6 years (interest: $3,526.56).
Frequently asked questions
How is the monthly car payment calculated?
Same amortizing-loan formula every fixed-rate loan uses: M = P × r(1+r)^n ÷ ((1+r)^n − 1), where P is the financed amount, r is the monthly interest rate (APR ÷ 12 ÷ 100), and n is the total number of months (years × 12). Each month a constant amount comes out — early payments are mostly interest, late ones mostly principal.
What about sales tax, registration, and the down payment?
Type the actual amount you're financing in "Loan amount" — that is, the vehicle price plus tax and fees, *minus* your down payment and any trade-in credit. The loan only applies to the amount you're actually borrowing. Some dealers roll fees into the loan; others don't.
APR vs. interest rate?
For most car loans they're effectively the same — there are no points or origination fees, so the APR equals the simple interest rate. If a lender charges fees that are rolled into the loan, the APR (which factors them in) will be a touch higher than the quoted interest rate.
What's a reasonable term?
4–5 years for a new car is the sweet spot for most buyers — longer terms mean lower monthly payments but more total interest, and you can end up underwater (owing more than the car is worth). 7+ year auto loans have become common but are usually a sign you're stretching to afford the car.
Should I take the 0% dealer offer or take the cash rebate?
Compute both. "0% for 60 months" looks great but the rebate could save you more in total dollars if you'd otherwise finance at a normal rate. Run the calculator on the discounted price at your normal financing rate, then compare against the full price at 0%.