Car Loan Calculator
Estimate monthly auto loan payments, total interest, and vehicle affordability. Plan your budget before you visit the dealership.
Σ The Formula
Real World Examples
# About This Calculator
The Car Loan Calculator helps you determine exactly what you can afford before walking onto a car lot. By inputting the vehicle price, your trade-in or down payment, and the loan terms, you can visualize your monthly obligation and total interest cost.
Keys to Smart Auto Financing
- Down Payment: Putting money down ("skin in the game") reduces your monthly payment and saves you interest. It also prevents you from being "upside down" (owing more than the car is worth).
- Loan Term: While a 72 or 84-month loan lowers your monthly payment, it drastically increases the total interest you pay. Aim for 60 months (5 years) or less if possible.
- Interest Rate: Your credit score largely determines this. A 1% difference in rate can save (or cost) you hundreds of dollars over the life of the loan.
Pro Tip: The 20/4/10 Rule
Financial experts often recommend: Put 20% down, finance for no more than 4 years, and keep payments under 10% of your monthly gross income.
Real-World Use Cases
Trade-In Decision
Calculators help you decide if you should trade in your old car or sell it privately to get a larger down payment.
Refinancing Check
If rates have dropped since you bought your car, enter your current balance and new rate to see how much you could save.
How To Use
- Enter the **Vehicle Price** (negotiated price + taxes/fees).
- Enter your **Down Payment** + Trade-in value.
- Enter the **Interest Rate** (APR).
- Enter the **Loan Term** (months).
- Click **Calculate Payment**.