BrainyCalculators
Login
Advertisement

🚗 Car Loan Calculator

Calculate your monthly car loan payment, total interest paid, and full amortization schedule. Factor in your down payment and trade-in value to get a precise picture of your auto financing costs.

Car Loan Payment Formula

Payment = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

P = Car Price − Down Payment − Trade-in Value  |  r = Monthly rate  |  n = Loan term in months

How to Use the Car Loan Calculator

  1. 1
    Enter Car Price
    The sticker price or negotiated price of the vehicle.
  2. 2
    Enter Down Payment
    Cash you pay upfront. A larger down payment reduces the loan and interest paid.
  3. 3
    Add Trade-in Value
    If you are trading in a vehicle, its value reduces the amount you need to finance.
  4. 4
    Set Rate & Term
    Enter your offered interest rate and choose a repayment period (typically 24–84 months).
  5. 5
    Compare Options
    Adjust down payment or term to find the monthly payment that fits your budget.

Real-World Example

Car price $28,000, down payment $4,000, trade-in $2,000, rate 6.5%, term 60 months.

Loan Amount = $28,000 − $4,000 − $2,000 = $22,000
Monthly rate r = 6.5% ÷ 12 ÷ 100 = 0.5417%
Monthly Payment = $430.33/month
Total Interest = $3,820 | Total Cost = $34,820
'What is a good car loan interest rate?', 'answer' => 'Rates vary by credit score and whether the car is new or used. Generally, new car loans for borrowers with excellent credit (720+) range from 5–7%. Used car rates are 7–10%. Rates above 15% are considered high and may indicate poor credit or dealer markup. Always shop multiple lenders.'], ['question' => 'Should I take dealer financing or get my own loan?', 'answer' => 'Get pre-approved from a bank or credit union before visiting the dealership. This gives you negotiating power and a baseline rate. Dealer financing can be competitive (sometimes 0% promotions), but dealers may mark up rates for profit. Compare the total cost of both options carefully.'], ['question' => 'How long should my car loan be?', 'answer' => 'Shorter terms (36–48 months) mean higher monthly payments but less total interest and quicker equity building. Longer terms (60–84 months) lower monthly payments but increase total interest and the risk of being upside-down on the loan. Avoid loans longer than 60 months for most situations.'], ]" />

Related Calculators

💳 Finance

Loan Calculator

Calculate monthly payments, total interest, and amortization schedule for any loan.

Calculate now
🏦 Finance

EMI Calculator

Calculate your monthly EMI for home, car, or personal loans instantly.

Calculate now
🔄 Finance

Refinance Calculator

Calculate potential savings when refinancing your mortgage or auto loan.

Calculate now