Car Loan Calculator
Enter the amount you expect to finance, the annual percentage rate (APR) and the term in months. The calculator shows the estimated monthly payment, total paid and total interest, so you can compare offers by their full cost instead of the headline monthly payment alone.
How a car loan payment is calculated
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1
Enter the amount financed
Use the vehicle price after down payment, trade-in value and any fees or taxes you plan to finance.
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2
Add APR and term
APR is the yearly cost of credit including eligible fees. The term is the number of monthly payments.
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3
Apply the installment formula
M = P × r × (1+r)^n / ((1+r)^n − 1), where r is the monthly rate and n is the number of months.
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4
Compare the full cost
Review the monthly payment, total paid and total interest before choosing a longer or shorter term.
Example: $30,000 financed at 7% APR
| Term | Monthly payment | Total paid | Total interest |
|---|---|---|---|
| 36 months | $926.31 | $33,347 | $3,347 |
| 48 months | $718.39 | $34,483 | $4,483 |
| 60 months | $594.04 | $35,642 | $5,642 |
| 72 months | $511.47 | $36,826 | $6,826 |
| 84 months | $452.78 | $38,034 | $8,034 |
Moving from 60 to 84 months cuts the payment by about $141 per month, but it adds about $2,392 of interest. A longer term can help cash flow, but it usually makes the car more expensive overall.
What APR means
APR is the annual cost of credit expressed as a percentage. It can include the interest rate plus certain loan fees, which makes it more useful for comparing offers than the note rate alone.
Avoiding negative equity
Negative equity means you owe more than the car is worth. It is more likely when the down payment is small, the term is long, add-ons are financed into the loan, or the vehicle depreciates quickly.
Ways to reduce the risk:
- Put more money down when you can.
- Keep the term close to the period you expect to own the car.
- Compare the total amount financed, not only the monthly payment.
- Ask whether extras such as warranties, protection packages or dealer fees are optional.
- Make sure extra payments are applied to principal when your contract allows it.
Paying early
Extra principal payments shorten the remaining term and reduce interest. On a $30,000 loan at 7% APR over 60 months, paying an extra $100 per month can finish the loan roughly 10 months early and save about $1,100 in interest.
Frequently Asked Questions
A shorter term costs less interest but has a higher payment. Many buyers use 48 to 60 months as a balanced range. If a 72 or 84 month term is the only affordable option, compare a cheaper car before signing.
Compare APR when available because it reflects the yearly cost of credit including certain fees. Also compare the amount financed, term and total amount you will pay.
A larger down payment lowers the amount financed, reduces interest and helps protect against negative equity. The right amount depends on your savings buffer and the car’s depreciation risk.
Enter the amount you actually plan to finance. If taxes, title fees, registration fees or add-ons are rolled into the loan, include them in the loan amount.
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