Estimate your monthly payments and total interest costs instantly.
Your Loan Summary
Monthly Payment:
Total Loan Amount:
Total Interest Paid:
Total Cost (Price + Tax + Interest):
How to Use This Car Loan Interest Calculator
Purchasing a vehicle is one of the most significant financial decisions you'll make. Our car loan interest calculator helps you break down the true cost of financing. To get an accurate estimate, you'll need the purchase price, your intended down payment, and the expected APR (Annual Percentage Rate) from your lender.
Understanding the Variables
Vehicle Price: The sticker price or negotiated price of the car.
Down Payment: The cash you pay upfront to reduce the loan balance.
Trade-in Value: The amount a dealer gives you for your old vehicle, which acts as a further down payment.
Interest Rate (APR): The yearly cost of borrowing money, expressed as a percentage.
Loan Term: How many months you have to repay the loan (commonly 36, 48, 60, or 72 months).
Example Calculation
Suppose you buy a car for $30,000. You provide a $5,000 down payment and have no trade-in. Your loan amount is $25,000. With a 5-year (60-month) term at a 5% APR:
Monthly Payment: ~$471.78
Total Interest Paid: ~$3,306.80
Total Amount Paid over 5 years: ~$28,306.80 (plus your initial $5,000)
Tips for Reducing Your Car Loan Costs
1. Improve Your Credit Score: Borrowers with higher credit scores qualify for significantly lower APRs, saving thousands in interest.
2. Shorten the Term: While a 72-month loan has lower monthly payments, you will pay much more in interest than you would with a 48-month loan.
3. Increase Your Down Payment: Aim for at least 20% down to avoid being "upside down" (owing more than the car is worth) and to lower your monthly obligation.
function calculateCarLoan() {
var price = parseFloat(document.getElementById('carPrice').value) || 0;
var down = parseFloat(document.getElementById('downPayment').value) || 0;
var trade = parseFloat(document.getElementById('tradeIn').value) || 0;
var term = parseFloat(document.getElementById('loanTerm').value) || 0;
var apr = parseFloat(document.getElementById('interestRate').value) || 0;
var taxRate = parseFloat(document.getElementById('salesTax').value) || 0;
if (price <= 0 || term <= 0) {
alert("Please enter a valid price and loan term.");
return;
}
var taxAmount = price * (taxRate / 100);
var principal = price + taxAmount – down – trade;
if (principal <= 0) {
document.getElementById('results').style.display = 'block';
document.getElementById('resMonthly').innerHTML = "$0.00";
document.getElementById('resPrincipal').innerHTML = "$0.00";
document.getElementById('resInterest').innerHTML = "$0.00";
document.getElementById('resTotal').innerHTML = "$" + (price + taxAmount).toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
return;
}
var monthlyPayment;
var totalInterest;
var totalCost;
if (apr === 0) {
monthlyPayment = principal / term;
totalInterest = 0;
} else {
var monthlyRate = (apr / 100) / 12;
monthlyPayment = (principal * monthlyRate) / (1 – Math.pow(1 + monthlyRate, -term));
totalInterest = (monthlyPayment * term) – principal;
}
totalCost = price + taxAmount + totalInterest;
document.getElementById('results').style.display = 'block';
document.getElementById('resMonthly').innerHTML = "$" + monthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resPrincipal').innerHTML = "$" + principal.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resInterest').innerHTML = "$" + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resTotal').innerHTML = "$" + totalCost.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
}