Work out your car loan
Type in the car's price, what you're putting down, the interest rate and the term. You'll get your monthly payment and the full picture — interest included.
per month · financed
Total cost of the car:
Where your money goes
Here's how every dollar splits between the car itself, the lender's cut, and your down payment.
| Item | Amount |
|---|---|
| Down payment | — |
| Loan amount | — |
| Total interest | — |
| Total cost of car | — |
The sticker price is a lie (a polite one)
That number on the windshield? It's the starting price, not the real one. The moment you finance a car, interest becomes a hidden second price tag — and on a long loan, that second tag can be thousands of dollars.
The math is simple enough: every payment first covers that month's interest, and only the leftover touches what you actually owe. Early on, most of your payment is just interest. That's why two people can buy the same car and end up paying wildly different totals.
A decent rule of thumb: the shorter the term, the less interest you hand the lender. Drop the term from 72 months to 60 in the calculator above and watch the total interest shrink — the monthly payment rises, sure, but the gap between the sticker price and the real price gets a lot smaller.
Shopping around for the rate matters just as much. A single percentage point on a five-year loan can cost or save you hundreds. If you're comparing loans, our interest calculator and loan interest guide are worth a look.
Car loan questions, answered straight
How is a car loan monthly payment calculated?
Lenders use the standard amortizing-loan formula: your loan amount gets split into equal monthly payments, and each payment covers that month's interest first, then chips away at the principal. The monthly rate is your annual rate divided by 12, and the number of payments is your term in months. Since early payments are mostly interest, you build equity slowly at first — which is why a solid down payment matters.
Should I put a bigger down payment?
If you can swing it, yes. A bigger down payment shrinks the loan, which shrinks the interest and the monthly payment. It also keeps you from going underwater — owing more than the car's worth — and new cars lose value fast in the first couple of years. Around 20% down on a new car is the classic target.
Is a longer term (72 or 84 months) a bad idea?
It's a trade-off. The monthly payment drops, which feels good, but you hand the lender a lot more interest over the life of the loan — sometimes thousands more. And you're paying off a car that's steadily depreciating. Run 60 vs 72 vs 84 in the calculator and compare the total interest lines before you decide.
What interest rate will I actually get?
Mostly, your credit score calls the shots — higher scores unlock lower rates, and subprime borrowers can pay several times more. The lender, the term, and whether the car is new or used matter too. This calculator doesn't guess your rate; it uses whatever you type in. Check a bank or credit union's current auto-loan rates and plug them in.
Is this financial advice?
No. This page just does the math on the numbers you give it. It isn't financial advice and doesn't replace talking to a lender or a licensed professional about your situation. If you're weighing a loan against a cheaper car, our personal loan calculator and refinance calculator can help you compare, and mortgage overpayment shows the same "shorter term wins" idea on a bigger loan.
Disclaimer: this calculator is for estimates only. It assumes a fixed interest rate, equal monthly payments, and no extra fees, taxes, or charges. Your lender's actual terms may differ — always confirm with them before signing.