Auto Loan Calculator
Estimate your monthly car payment, total interest, and total cost from the vehicle price, down payment, interest rate, and loan term.
This calculator provides estimates only and is not financial advice. Consult a qualified financial advisor for personalized guidance.
How to use this calculator
Enter the vehicle price, your down payment, the loan's annual interest rate (APR), and the loan term in months, then click Calculate Payment. The results show your monthly payment, total interest, and total cost. Total cost adds your down payment back in, so it reflects everything you'll pay for the vehicle, principal and interest combined. Sales tax, title, and registration fees are not included.
How is this calculated?
The financed amount (vehicle price minus down payment) is run through the standard loan amortization formula: M = P × r × (1 + r)^n / ((1 + r)^n − 1), where M is the monthly payment, P is the amount financed, r is the monthly interest rate (APR divided by 12), and n is the loan term in months. Total interest is the monthly payment multiplied by the number of months, minus the amount financed.
Worked example: the same car over three terms
A $32,000 car with $4,000 down leaves $28,000 to finance. At 7.5% APR:
- 48 months: $677.01 a month, $4,496.44 total interest
- 60 months: $561.06 a month, $5,663.75 total interest
- 72 months: $484.12 a month, $6,856.87 total interest
Stretching from 60 to 72 months lowers the payment by about $77 but adds $1,193.12 of interest. The total cost of the 60-month version, including the down payment, is $37,663.75.
Why to negotiate the price, not the payment
A monthly payment can be made to fit almost any budget by lengthening the term, so a payment-first conversation hides what the car actually costs. Agree the out-the-door price first, then check the rate and term separately with this calculator. Long terms carry a second risk: cars lose value fastest in their first years, and on a 72- or 84-month loan the balance can stay above what the car is worth for a long time (being "upside down"), which becomes a problem if you need to sell or the car is written off.
What to add before comparing offers
This calculator finances the vehicle price minus your down payment. Sales tax, title and registration fees, dealer documentation fees, and any add-ons rolled into the loan increase the amount financed. A trade-in reduces it, and so does paying some of those costs in cash. Adjust the vehicle price field to the real amount you'll borrow. For a car loan in rupees, run each offer through the EMI Calculator and compare the total interest, not just the monthly figure.
Frequently Asked Questions
What's a good interest rate for a car loan?
Auto loan rates vary a lot based on your credit score, whether the car is new or used, and the lender, so there is no single "good" rate. Getting quotes from a few banks, credit unions, and dealerships within the same short window is the best way to see what rate you actually qualify for.
Should I make a bigger down payment?
A larger down payment reduces the amount you finance, which lowers both your monthly payment and the total interest you pay over the loan. Try entering different down payment amounts above to see the effect on your specific numbers.