Car Loan Calculator
Buying a car is one of the biggest financial decisions most people make. This calculator helps you understand the true cost of financing a vehicle by showing your monthly payment, total interest, and total amount paid over the life of the loan.
Enter the vehicle price, your down payment, loan term in months, and the annual interest rate. The calculator uses the standard amortization formula to compute your fixed monthly payment and breaks down how much of your total cost goes to interest versus principal.
How it works
M = P × r × (1 + r)^n / ((1 + r)^n - 1), where M is the monthly payment, P is the loan principal (price - down payment), r is the monthly interest rate (annual rate / 12), and n is the number of months.
Use cases
- Estimating monthly payments before visiting a dealership
- Comparing different loan terms (36, 48, 60, 72 months)
- Understanding how a larger down payment reduces total cost
- Evaluating the impact of different interest rates on total paid