Car Loan Calculator
Calculate your monthly car loan payment and total interest paid — know the real cost of financing before you sign.
Car Loan Calculator
Loan amount + rate + term → monthly payment
How It Works
The standard amortization formula calculates equal monthly payments that retire the loan in exactly the specified term. Each payment covers interest on the remaining balance plus principal.
How to Use This Calculator
- Enter the loan amount (vehicle price minus down payment).
- Enter the annual interest rate as a percentage.
- Enter the loan term in months (36, 48, 60, or 72 are common).
- Click Calculate — monthly payment and total interest appear.
- Reduce the term to see how much interest you save with faster repayment.
Worked Example
Reference Table
| Loan | Rate | 48 mo | 60 mo | 72 mo |
|---|---|---|---|---|
| $20,000 | 4% | $452/mo | $368/mo | $313/mo |
| $25,000 | 5% | $576/mo | $472/mo | $402/mo |
| $30,000 | 6% | $705/mo | $580/mo | $498/mo |
| $35,000 | 7% | $837/mo | $693/mo | $598/mo |
| $40,000 | 8% | $976/mo | $811/mo | $702/mo |
Frequently Asked Questions
Should I choose the longest loan term to minimize monthly payments?
Only if cash flow is tight. Longer terms significantly increase total interest paid. A $25 000 loan at 6%: 48 months costs $3 146 interest; 72 months costs $4 740 interest — $1 594 more for lower payments.
What is a good interest rate for a car loan in 2025?
Rates vary by credit score and country. In the US, buyers with excellent credit (750+) typically get 4–6% APR on new cars. Average credit may see 8–12%. Used car loans typically run 1–3% higher than new car rates.
How does my down payment affect the total cost?
Every dollar of down payment directly reduces the loan amount, saving interest at the loan rate. A $3 000 down payment on a 5%, 60-month loan saves approximately $395 in interest over the loan term.
Can I pay off a car loan early without a penalty?
Most auto loans allow early repayment without penalty. Check your loan agreement for any prepayment penalty clause. Paying extra toward principal each month reduces the loan balance faster, saving significant interest.
