Car Finance Calculator
Calculate your monthly car loan payments, total interest, and total cost based on loan amount, interest rate, and term.
Published by:
isCalculator Editorial Team
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How to use this tool?
How to Use the Car Finance Calculator
- Enter Loan Amount – Type the total amount you plan to borrow (e.g., 25000 for $25,000). Must be greater than $0.
- Enter Annual Interest Rate – Input the yearly interest rate as a percentage (e.g., 5.5 for 5.5%). Can be 0 for no interest.
- Enter Loan Term – Specify the loan duration in months (e.g., 60 for 5 years). Minimum is 1 month.
- Enter Down Payment (optional) – Add any upfront payment you’ll make (e.g., 5000 for $5,000). This reduces the principal. Must be less than the loan amount.
- Click “Calculate” – The button runs the calculation. Results appear below:
- Monthly Payment – Your fixed monthly installment.
- Total Interest – The total interest paid over the loan term.
- Total Cost – The sum of all payments plus your down payment.
Note: All monetary values are in dollars ($). Use numbers only (no commas or symbols). The calculator uses the standard loan amortization formula.
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Frequently Asked Questions
We use the standard amortization formula: M = P * [r(1+r)^n] / [(1+r)^n - 1], where P is the principal (loan amount minus down payment), r is the monthly interest rate (annual rate divided by 12), and n is the number of monthly payments.
Total interest is the amount of interest paid over the loan term. Total cost includes the down payment plus the total of all monthly payments (principal + interest).
Yes, you can enter a down payment. The calculator subtracts it from the loan amount to determine the principal. A larger down payment reduces your monthly payment and total interest.
