Car Loan Calculator

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Estimated monthly payment (initial):

Financed amount:

Sales tax total:

Fees:

Payoff months:

Estimated payoff date:

Effective annual rate (compounded monthly): %

Total payment (all months):

Total interest (all months):

Month Payment Principal Interest Tax Fees Extra Balance
About the Car Loan Calculator
What is a car loan?

A car loan is an installment loan used to purchase a vehicle. The vehicle is collateral. You repay principal plus interest over a set term.

Why use this calculator
  • Estimate monthly payment and total interest.
  • Compare terms, rates, and down payments.
  • See impact of taxes, fees, and extras.
Loan types
  • Fixed rate: One rate for the full term. Payment stays constant.
  • Variable/Adjustable rate: Rate can change by index + margin. Payment may rise or fall.
Fields in this calculator
  • Vehicle price: Agreed purchase price before taxes/fees.
  • Down payment: Cash paid upfront. Lowers the financed amount.
  • Trade-in value (optional): Value of your old vehicle applied toward the price.
  • Sales tax (optional): Tax on the purchase. Many regions tax price minus trade-in; rules vary.
  • Fees (optional): Registration, documentation, delivery. Paid upfront or financed.
  • Loan amount: Price − down − trade-in + taxable items + fees financed.
  • Annual interest (%): Nominal yearly rate (APR approximates full cost when fees are included).
  • Term (years or months): Repayment duration. Longer term lowers payment but raises total interest.
  • Extra payment (optional): Added to principal each month to shorten the term.
How payment is computed
Monthly rate r = (annual_rate / 12 / 100)
Number of payments n = term_years × 12
Payment M = P × r × (1+r)^n / ((1+r)^n - 1)
Where P = loan amount
Interest_i = balance × r
Principal_i = M − Interest_i
New balance = balance − Principal_i − extra_payment
Interpreting results
  • Monthly payment: Principal + interest (taxes/fees only if financed).
  • Total interest: Sum of interest over the term.
  • Total cost: Down payment + financed amount + total interest.
Advantages
  • Predictable budgeting with fixed payments.
  • Lower payment possible via longer term.
Considerations
  • Depreciation can exceed equity early; avoid being “upside down.”
  • Long terms increase total interest.
  • Check for prepayment penalties before making extra payments.
  • Insurance and maintenance are not in the loan payment but affect ownership cost.
How to reduce interest cost
  • Increase down payment or trade-in value.
  • Choose a shorter term if affordable.
  • Improve credit to qualify for a lower rate.
  • Make early extra principal payments.

This is an estimate. Actual offers depend on credit, income, vehicle type, taxes, and lender rules.