Car Loan Calculator

Calculate car-loan payments, interest and total repayment. Enter your loan amount, annual interest rate and loan term to estimate the monthly payment and overall borrowing cost.

The amount financed for the vehicle.

%

Annual interest rate charged on the car loan.

years

The number of years used to repay the car loan.

Car Loan Formula

Monthly Payment = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1] Where: P = Loan amount r = Monthly interest rate = Annual rate ÷ 12 ÷ 100 n = Total number of monthly payments = Loan term × 12 Total Repayment = Monthly Payment × n Total Interest = Total Repayment − Loan Amount If the interest rate is 0%: Monthly Payment = Loan Amount ÷ n

This calculator estimates principal and interest for a standard amortizing car loan. Down payments, taxes, registration, insurance, processing fees, dealer charges and other vehicle costs are not included unless reflected in the loan amount.

How to Use the Car Loan Calculator

1

Enter the Loan Amount

Enter the amount you expect to finance after any down payment.

2

Enter the Interest Rate

Enter the annual interest rate offered for the car loan.

3

Enter the Loan Term

Enter the number of years over which the vehicle loan will be repaid.

4

Calculate Your Car Loan

The calculator displays the estimated monthly payment, total interest and total repayment.

Example Car Loan Calculation

1,000,000 loan at 9% for 5 years

Given:

  • Loan Amount = 1,000,000
  • Annual Interest Rate = 9%
  • Loan Term = 5 years

Monthly rate:

9% ÷ 12 = 0.75% per month

Total payments:

5 × 12 = 60 monthly payments

Result: Monthly Payment ≈ 20,758.14

Total Repayment ≈ 1,245,488.40.

Total Interest ≈ 245,488.40.

Understanding Your Car Loan Results

Monthly Payment

The estimated regular payment toward the principal and interest on the vehicle loan.

Total Interest

The estimated interest paid over the full car-loan term.

Total Repayment

The combined principal and interest paid across all scheduled payments.

Important Consideration

The actual cost of buying a vehicle may also include taxes, registration, insurance, maintenance, dealer charges and other expenses.

Key Car Loan Terms

Principal

The amount financed for the vehicle before interest and additional charges.

Interest Rate

The annual rate charged on the outstanding car-loan balance.

Loan Term

The period over which the car loan is scheduled to be repaid.

Down Payment

An upfront amount paid toward the vehicle that reduces the amount financed.

Total Interest

The total interest accumulated across the scheduled repayment period.

Loan-to-Value

A ratio comparing the amount financed with the vehicle's value or purchase price.

Frequently Asked Questions

A car loan calculator estimates monthly payments, total interest and total repayment using the amount financed, interest rate and loan term.
The calculator uses the standard amortizing-loan formula based on the loan principal, monthly interest rate and total number of payments.
Yes. A larger down payment generally reduces the amount that needs to be financed, which can lower the monthly payment and total interest.
Generally, yes. A longer term spreads repayment over more months, but it can increase the total interest paid.
No. This calculator estimates the loan principal and interest only. Vehicle insurance, registration, taxes and other ownership costs are separate.
Yes. At 0% interest, the financed amount is divided evenly across the total number of monthly payments.

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