Car Loan Calculator (Free Car Payment Calculator)
Use this free car loan calculator to estimate your monthly car payment, total interest and the full cost of financing a vehicle. Enter your car price, down payment, trade-in value and interest rate for an instant breakdown.
Car Loan Calculator
📋 Yearly Payment Schedule
| Year | Principal | Interest | Balance |
|---|
How to Use the Car Loan Calculator
Enter your vehicle price, down payment amount and any trade-in value. Then add your annual interest rate and choose your loan term. Click Calculate to see your monthly payment, total interest and a full yearly repayment schedule.
How Car Loan Payments Are Calculated
Your monthly payment is calculated using the standard amortisation formula, which divides your loan amount across equal monthly payments of principal and interest. Early payments go mostly toward interest — over time more goes toward the principal.
Formula: M = P × [r(1+r)^n] / [(1+r)^n−1]
Where P = loan amount, r = monthly interest rate, n = number of months
Tips for Getting a Better Car Loan
A larger down payment reduces your loan amount and total interest. A shorter loan term means higher monthly payments but significantly less interest overall. Shopping around for a lower interest rate — even 1% lower — can save hundreds over the life of the loan.
FAQs
What is a good interest rate for a car loan?
This varies by country and credit score. Generally anything under 5% is considered good. Use this calculator to compare different rates and see the impact on your total cost.
Should I put more money down on a car?
Yes — a larger down payment reduces the amount you borrow, which lowers your monthly payment and total interest paid. Most financial advisors recommend at least 10-20% down.
What loan term should I choose?
Shorter terms (24-36 months) cost less overall but have higher monthly payments. Longer terms (60-72 months) are easier monthly but cost significantly more in interest. Use the tip shown after calculating to compare.
Does this work for any currency?
Yes — just enter your amounts in your local currency. The calculator works with any currency worldwide.
Is this calculator free?
Yes, completely free with no sign-up required.