Car Loan Calculator
Calculate your monthly car payment, total interest, and total cost of your auto loan.
See how loan term and interest rate affect what you pay.
Monthly Car Payment
Car loan payments use the standard amortization formula:
M = P × [r(1+r)^n] / [(1+r)^n - 1]
Where:
- M = Monthly payment
- P = Loan amount (Vehicle Price − Down Payment − Trade-in Value)
- r = Monthly interest rate (annual rate / 12)
- n = Total number of payments (loan term in months)
Example: A $35,000 car with $5,000 down, no trade-in, at 5.9% for 60 months:
- Loan amount = $30,000
- Monthly payment = $579.98
- Total interest = $4,799
- Total cost = $34,799
Tips:
- Shorter loan terms (36-48 months) save significantly on interest
- A larger down payment reduces both your payment and total interest
- Pre-approval from your bank or credit union often beats dealer financing
- Consider the total cost, not just the monthly payment