Car Loan Calculator

Car loans use the same amortization formula as mortgages. The monthly payment depends on three inputs: the loan amount (purchase price minus down payment minus trade-in value), the annual interest rate, and the loan term. For a $30,000 loan at 6.5% APR over 60 months, the monthly payment is $587. Over the life of the loan, you will pay $5,220 in total interest — meaning the car actually costs $35,220. Extending to 72 months drops the payment to $507 but increases total interest to $6,504. This is why financial advisors recommend the shortest term you can afford: a 48-month loan on the same amount at the same rate costs $712 monthly but only $4,155 in total interest, saving over $1,000. Our calculator shows the full amortization schedule so you can see how each payment splits between principal and interest, and how extra payments accelerate payoff. All your financial details stay in your browser.

Your credit score dramatically affects car loan rates. In 2024, borrowers with scores above 720 typically get rates around 5-6%, while scores below 600 face rates of 12-18%. On a $25,000 loan over 60 months, the difference between 5.5% and 15% is $236 per month — or $14,160 over the loan. Before visiting a dealership, use this calculator to determine what you can actually afford. A common rule is that total car expenses (payment, insurance, fuel, maintenance) should not exceed 15-20% of your take-home pay. If you bring home $4,000 monthly, aim for a payment under $400, which means a loan of roughly $21,000 at 6% for 60 months. The calculator also helps evaluate whether 0% APR dealer offers (which often come with a higher purchase price) beat negotiating a lower price with standard financing. Since these are personal financial decisions, everything runs locally — no bank or dealer sees your calculations.