Car Loan Calculator
Estimate your monthly car payment.
Results update as you type.
How it works
Financing a car turns one big price into a stream of monthly payments, and this car loan calculator shows exactly what that stream looks like before you sign. Enter the vehicle price, any down payment and trade-in, the annual interest rate, and the term in months, and it returns your monthly payment, the total interest you will pay, and the amount actually being financed. Seeing all three numbers together prevents the classic mistake of shopping by monthly payment alone. A longer term shrinks the monthly figure but quietly inflates total interest, so a payment that feels affordable can hide a much larger lifetime cost. The amount financed makes the effect of your down payment and trade-in concrete: every dollar you put down is a dollar you never pay interest on, which is why a bigger deposit lowers both the payment and the total. The engine uses standard loan amortization, the same math lenders apply. Each equal payment covers the month's interest on the outstanding balance first, then reduces the principal, so early payments are interest-heavy and later ones increasingly pay down the loan. By adjusting the rate, term, or down payment and watching the results move, you can find a structure that fits your budget while keeping the interest you hand to the lender under control.
payment = L × r ÷ (1 − (1 + r)^−n)
The amount financed is the vehicle price minus any down payment and trade-in. The standard amortization formula then spreads that principal over the term, where r is the monthly rate (APR ÷ 12) and n is the number of months. The denominator discounts every future payment back to today so each equal instalment covers interest first and chips away at principal, until the balance reaches zero at the final payment.
Source:Standard loan amortization
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter vehicle price, interest rate (apr) and loan term.
- 2
Adjust the options
Adjust down payment and trade-in value if they apply — sensible defaults are already set.
- 3
Read your result
Monthly payment updates instantly as you type — no button to press.
Frequently asked questions
What counts as the amount financed?
The amount financed is the vehicle price minus your down payment and any trade-in value. This is the principal the loan actually covers and the figure interest is charged on. Reducing it with a larger down payment or a higher trade-in directly lowers both your monthly payment and the total interest. If your down payment and trade-in equal or exceed the price, there is nothing left to finance.
How does the loan term affect what I pay?
A longer term spreads the balance over more months, so each payment is smaller, but you pay interest for longer and the total interest climbs. A shorter term raises the monthly payment yet cuts the overall cost. This calculator shows both the payment and the total interest so you can weigh a comfortable monthly figure against the true lifetime cost of the loan before deciding.
Is APR the same as the interest rate?
They are closely related but not identical. The interest rate is the cost of borrowing the principal, while APR, the annual percentage rate, also folds in certain fees to reflect the loan's true yearly cost. This calculator treats the rate you enter as the annual rate applied monthly. For the most accurate payment, enter the APR your lender quotes, since it captures the effective borrowing cost.
Why is total interest so important to check?
Total interest is the extra money you pay the lender on top of the amount financed, and it can be substantial on longer loans. Focusing only on a low monthly payment can disguise a large total, because stretching the term reduces each payment while adding interest month after month. Checking total interest alongside the payment reveals the real price of financing and helps you avoid overpaying.
How can I lower my monthly car payment?
You can lower the payment by increasing your down payment or trade-in, which shrinks the amount financed, by securing a lower interest rate through better credit or shopping lenders, or by extending the term. Be cautious with the last option, since a longer term reduces the payment but raises total interest. Adjust each input here to find a balance that fits your budget and total cost.