Car Loan Calculator

Estimate your monthly payment, total interest, and the final cost of your auto loan.
Principal amount borrowed (after down payment).
Typically between 24 and 84 months.
Used for Total Cost calculation.

Car Loan Projections

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Estimated Monthly Payment ($)
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Total Interest Paid ($)
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Total Cost of Car (Incl. Interest & Down Payment) ($)

Financing Analysis

The **Car Loan Calculator** helps you determine the affordability and true financial impact of your auto loan.

Planning Your Auto Financing with the Car Loan Calculator

The **Car Loan Calculator** is an indispensable tool for anyone purchasing a vehicle with financing. It uses the standard **amortization** formula to convert your **loan amount**, **annual interest rate (APR)**, and **loan term** into a precise **monthly payment** figure, helping you budget for the commitment and evaluate loan offers from different lenders.

The Monthly Payment Formula (Amortization)

The **monthly payment** formula for a fixed-rate loan is:

$$M = P \left[ \frac{r(1+r)^n}{(1+r)^n - 1} \right]$$

Where $P$ is the **loan amount**, $r$ is the monthly interest rate ($\text{APR} / 12$), and $n$ is the **loan term** in months. The calculator also totals the **total interest paid** over the life of the loan and provides the **total cost of car** (Principal + Interest + Down Payment).

Key Car Loan Terms to Compare

Use the **Car Loan Calculator** to compare scenarios. A longer **loan term** will result in a lower **monthly payment** but a much higher **total interest** paid. Conversely, increasing your **down payment** reduces the **loan amount** and significantly cuts both your monthly obligation and total interest.

Car Loan FAQs

What is the APR for a car loan?

**APR** stands for Annual Percentage Rate. It is the yearly cost of the loan, expressed as a percentage. It includes the interest rate and other charges. The **Car Loan Calculator** uses the APR as the **interest rate** input to determine the true cost of borrowing.

How does the loan term affect the total cost?

A longer **loan term** (e.g., 84 months) results in a lower **monthly payment** but allows the interest to compound over more months, dramatically increasing the **total interest paid** and, therefore, the **total cost of the car**.

What should I include in the Car Loan Amount input?

The **Car Loan Amount** should be the amount you are borrowing from the bank. This is the **price** of the car plus any taxes or fees, minus any trade-in value or **down payment** you make upfront.