Car Loan Calculator

Enter the loan amount, rate, and term to see your monthly payment and total interest. The longer your term, the lower your payment — but the more you pay overall.


Enter Loan Details
$

Total you're borrowing for your car

%

Yearly cost of your loan as a percentage

How long you have to pay back the loan

Car Loan Results

Monthly payment first, then the total loan cost.

Monthly Payment

$377.42

Estimated car payment

Total Principal
Amount you borrowed
$20,000.00
Total Interest
Cost of borrowing
$2,645.20
Total Payment
Principal and interest
$22,645.20

Total Cost Breakdown

Total cost: $22,645.20.

How the car loan calculator works

This calculator turns a loan amount, interest rate (APR), and term into a monthly payment and — just as important — the total interest you will pay before the car is yours. It uses the same amortization math as a mortgage: each payment covers that month's interest first, and the rest reduces the balance.

The term length is where dealers play games. Stretching a $20,000 loan from 48 to 72 months at 7% drops the payment from about $479 to $341 — but raises total interest from roughly $2,990 to $4,545. A longer term also means more time "underwater," owing more than the car is worth. When a dealer asks "what monthly payment are you looking for?", they are steering you toward a longer term; this calculator lets you see the full cost instead.

Run the numbers before you visit the dealership and consider getting pre-approved by a bank or credit union first. Walking in with your own financing turns the conversation from "what payment fits?" into "beat this rate," which is a much stronger position.

Frequently asked questions

What is APR on a car loan?

Annual Percentage Rate — the yearly cost of borrowing, including interest and most lender fees. It is the single best number for comparing loan offers; a lower APR on the same amount and term always costs less.

Is a longer loan term better because the payment is lower?

The payment is lower but the total cost is higher, often by thousands, and you spend more years owing more than the car is worth. A common guideline is to keep new-car loans at 60 months or less — if you need 72–84 months to afford the payment, the car is likely too expensive.

How much should I put down on a car?

A common target is 10–20% of the price. A down payment lowers your monthly payment, reduces total interest, and protects you from being underwater if the car's value drops faster than the loan balance.

Should I finance through the dealer or my own bank?

Get pre-approved by a bank or credit union before you shop — credit unions often have the lowest rates. Then let the dealer try to beat that offer. Without your own pre-approval, you have no benchmark and the dealer controls the numbers.

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