Auto Loan Calculator
Estimate your monthly car payment and the total interest on a car loan.
How a car loan payment is worked out
You borrow the price of the car plus any tax, minus what you pay up front (the down payment and the trade-in). The lender then spreads that amount over equal monthly payments, each covering interest and part of the balance.
Example
A 30,000 car with 7% tax comes to 32,100. After a 3,000 down payment you borrow 29,100. At 6.5% over 60 months the payment is about 569.37, and you pay roughly 5,062 in interest.
Tips for a cheaper loan
- A shorter term means a higher payment but much less interest.
- A bigger down payment lowers the amount borrowed and can improve the rate you are offered.
- Compare offers using the total cost, not only the monthly payment. Fees and insurance are not included here.
Frequently asked questions
Is tax added to the loan?
Often, yes, but rules differ by country and region. If your tax is included in the sticker price, set the tax rate to 0.
Is a longer loan better?
It lowers the monthly payment but raises the total interest, and you may owe more than the car is worth for longer.
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