Calculate the monthly payment on your car loan based on car price, down payment or trade-in value, interest rate and term.
Monthly payment
$455
Amortizing loan, 7 years
Loan amount
$30,000
Total interest
$8,220
Scenario: What happens at +1 percentage point interest?
At —% interest, the monthly payment would be — — — more per month than today.
How to use the car loan calculator
Enter the car price you plan to pay.
Enter your down payment, or the value of the car you're trading in.
Enter the interest rate and desired repayment period — the calculator shows the monthly payment and total interest cost.
How the car loan is calculated
The loan amount is the car price minus down payment/trade-in. The monthly payment is then calculated with the amortization formula:
Monthly payment = L × r ÷ (1 − (1 + r)−n)
where L is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of months.
Car loans usually have a shorter term than mortgages — often 5–10 years — since the car loses value over time.
Note: The calculation doesn't include origination fees, installment fees, or any residual value/balloon agreement. Actual loan offers from a bank or finance company may differ.
Frequently asked questions
Should I choose a long or short term for my car loan?
A shorter term gives a higher monthly payment but lower total interest costs. Since a car depreciates in value, too long a term can leave you owing more than the car is worth (an "underwater" loan).
Is it smart to use a trade-in as a down payment?
Yes, it reduces your loan amount directly. Keep in mind the trade-in value the dealer offers may be lower than what you could get selling the car privately.