Car Loan Calculator
Calculate monthly car payments, total interest, and loan costs
Calculator
Compare Loan Terms
| Term | Monthly | Total Interest | Total Cost |
|---|---|---|---|
| 24 months (2 yr) | $1,113.66 | $1,728 | $26,728 |
| 36 months (3 yr) | $766.23 | $2,584 | $27,584 |
| 48 months (4 yr) | $592.87 | $3,458 | $28,458 |
| 60 months (5 yr) | $489.15 | $4,349 | $29,349 |
| 72 months (6 yr) | $420.25 | $5,258 | $30,258 |
| 84 months (7 yr) | $371.24 | $6,184 | $31,184 |
Car Loan Tips
- A 20% down payment helps avoid being "upside down" on your loan
- Shorter loan terms have higher payments but save thousands in interest
- Check your credit score before applying - better scores get better rates
- Consider total cost of ownership: insurance, fuel, maintenance
How to Use
Calculate your car loan payment
Enter vehicle price
Input the total price of the vehicle
Enter down payment
Input your down payment amount
Set loan terms
Enter interest rate and loan term (36-72 months)
See payment breakdown
View monthly payment and total interest
Car Loan Payment Formula
M = P × [r(1+r)^n] / [(1+r)^n - 1]
Same as mortgage formula: M = monthly payment, P = loan amount, r = monthly rate, n = months.
Frequently Asked Questions
The 20/4/10 rule recommends: 20% down payment, 4-year loan maximum, and total car costs (payment + insurance) under 10% of gross income. If you earn $5,000/month, keep total car costs under $500/month.
In 2024, good rates are 5-7% for new cars and 7-10% for used cars with excellent credit (720+). Rates vary by credit score, loan term, and lender. Credit unions often offer lower rates than dealerships.
Longer terms mean lower payments but more total interest. A $30,000 loan at 6%: 48 months = $704/month ($3,807 interest) vs 72 months = $497/month ($5,788 interest). You pay $2,000 more for the longer term.
Pay cash if you can do so without depleting emergency funds. Finance if the interest rate is low and you can invest the cash at a higher return. Never finance if the rate exceeds 8-10% - consider a cheaper car instead.