What formula does this calculator use?

It uses the standard loan amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the principal, r is the monthly interest rate (APR ÷ 12), and n is the number of monthly payments.

Should I enter the car price or the loan amount?

Enter the loan amount — the amount you are borrowing. If you are making a down payment, subtract it from the car price first. For example, a $30,000 car with a $5,000 down payment means a $25,000 loan amount.

Does this include taxes, fees, or insurance?

No. The calculator computes principal and interest only. Taxes, registration fees, GAP insurance, and extended warranties are not included. Add those costs to the vehicle price before calculating your loan amount if they are rolled into financing.

What is a good APR for a car loan?

Rates vary by credit score and lender. As of 2025, borrowers with excellent credit (720+) typically see rates between 5–8% for new cars. Used cars tend to carry higher rates. Always shop at least three lenders — your bank, a credit union, and dealer financing — to compare.

How does loan term length affect total cost?

A longer term lowers your monthly payment but increases total interest paid. A 72-month loan at 7% APR on $25,000 costs about $1,900 more in interest than a 48-month loan for the same amount. Shorter terms save money but require higher monthly payments.

Can I use this for a used car or refinance?

Yes. The calculator works for any installment loan — new car, used car, or refinance. Just enter the remaining balance (for a refinance), the new APR, and the new term.

Car Loan Calculator

Name: Car Loan Calculator
Availability: InStock
Author: Nham Vu

Enter your loan amount, interest rate, and term to instantly see your monthly payment, total interest, and full cost breakdown.

Loan Details

Loan Amount ($)

Amount you are borrowing (after down payment)

Annual Interest Rate (APR %)

Annual Percentage Rate offered by your lender

Loan Term (months)

Shorter terms mean higher payments but less interest

Monthly Payment

—

Principal

—

Total Interest

—

Total Cost (Principal + Interest)

—

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Summary

Enter your loan amount, interest rate, and term to instantly see your monthly payment, total interest, and full cost breakdown.

How it works

Enter the total loan amount (the amount you are financing, not the vehicle price).
Enter the annual interest rate (APR) offered by your lender.
Select the loan term in months (common terms: 24, 36, 48, 60, 72 months).
Click Calculate to see your monthly payment, total interest, and total cost.
Adjust any field and recalculate to compare different financing scenarios.

Use cases

Compare monthly payments across different loan terms before visiting a dealership.
Estimate how much interest you will pay over the life of a car loan.
Determine the maximum loan amount that fits your monthly budget.
Evaluate whether a lower APR from a credit union justifies refinancing.
Quickly check dealer financing offers against your pre-approved rate.
Plan a down payment strategy by seeing how it reduces your monthly cost.

Frequently Asked Questions

Last updated: 2026-06-11 · Reviewed by Nham Vu