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Car Loan Calculator
Estimate your monthly car payment, total interest and total cost, and see how the balance falls over time. Enter your numbers and press Calculate.
Written by TopicDrill Editorial Team·Updated June 2026
Remaining balance over time
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How the car loan calculator works
Your monthly payment is split into two parts: paying down what you borrowed (principal) and the interest the lender charges. In the early months most of each payment goes to interest. As the balance falls, more goes to principal, which is why the payoff chart above curves down slowly at first and faster near the end.
The amount you finance is simply the car price minus your down payment. A bigger down payment shrinks the loan, which lowers both your monthly payment and the total interest you pay. Trade-in value works the same way as cash down.
A quick example
Finance a $35,000 car with $5,000 down at 7.5% over 5 years. The $30,000 loan costs about $601 a month. Over the full term you pay roughly $6,053 in interest, so the total cost of the loan is about $36,053 on top of your down payment.
Things to keep in mind
This is an estimate of principal and interest only. Your real out-the-door cost also includes sales tax, fees and any add-ons. Your rate depends on your credit, the lender and whether the car is new or used. For tips on shopping for an auto loan, see the Consumer Financial Protection Bureau. You can also compare scenarios with our other free calculators.
Frequently asked questions
How is a monthly car payment calculated?
The payment uses the amortizing loan formula M = P·r(1+r)^n / ((1+r)^n − 1), where P is the amount financed, r is the monthly interest rate and n is the number of monthly payments. The amount financed is the car price minus your down payment.
How much should I put down on a car?
A common guideline is at least 20% down on a new car and 10% on a used one. A larger down payment lowers the amount you finance, which reduces both your monthly payment and the total interest you pay over the life of the loan.
Does a longer loan term save me money?
A longer term lowers the monthly payment but raises the total interest, because you borrow the money for more time. A 72 or 84 month loan can also leave you owing more than the car is worth. Shorter terms cost more per month but less overall.
What is not included in this estimate?
This calculator covers principal and interest on the loan only. It does not include sales tax, title and registration fees, dealer add-ons, or gap and extended warranty products, which are sometimes rolled into the financed amount and would increase your payment.
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