Car Loan Calculator
Estimate your monthly payment and total cost of financing a vehicle.
Why a Car Loan Calculator Matters
Buying a car is a major expense, and financing can add thousands in interest. This calculator helps you understand your monthly payment, total cost, and how down payments, trade-ins, and interest rates impact your budget.
How to Use This Calculator
- Car Price: The sticker price or negotiated cost
- Down Payment: Cash you pay upfront
- Trade-In: Value of your old car (reduces loan amount)
- Loan Term: 48–72 months are common; longer = lower payment but more interest
- Interest Rate: Your APR (check lender offers)
- Click "Calculate Car Loan" to see your payment and total cost
Formula Used
M = P [ i(1+i)ⁿ ] / [ (1+i)ⁿ – 1 ]Where:
- M = Monthly payment
- P = Loan amount (price – down – trade-in)
- i = Monthly interest rate (annual rate / 12)
- n = Number of payments (loan term in months)
Example: $30K car, $5K down, $3K trade-in, 5.5% rate, 60 months
Loan = $22K → Monthly = $422 → Total Paid = $25,320 → Interest = $3,320
Impact of Loan Terms
| Term | Monthly Payment | Total Interest |
|---|---|---|
| 48 Months | $504 | $1,992 |
| 60 Months | $422 | $3,320 |
| 72 Months | $367 | $4,424 |
| 84 Months | $328 | $5,552 |
Car Loan Tips
- ✅ Make a large down payment — reduces interest and loan risk
- ✅ Improve credit score — can save hundreds in interest
- ✅ Negotiate price first, then financing — don't let monthly payment distract you
- ✅ Avoid long loan terms — you may owe more than car is worth
- ✅ Compare multiple lenders — banks, credit unions, dealerships
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