Car Loan Calculator
Calculate your monthly car payment, total interest cost, and view a complete amortization schedule. Compare different loan terms to find the best option for your budget.
Loan Details
Quick Presets
Loan Estimate
Monthly Payment
$618.486
Loan Amount
$31,610.00
Total Interest
$5,499.157
Total Cost
$44,109.157
LTV Ratio
90.3%
Total Payments
$37,109.157
How to Use the Calculator
- 1.Enter Vehicle Price: Input the total purchase price of the car
- 2.Add Down Payment: Enter the amount you plan to pay upfront
- 3.Include Trade-In: If applicable, subtract the trade-in value
- 4.Input APR: Enter your loan’s annual percentage rate (interest rate)
- 5.Select Loan Term: Choose the repayment period (36-84 months)
- 6.Review Results: See your monthly payment, total cost, and interest paid
Real-World Examples
Economy Car (2024)
- Vehicle Price: $25,000
- Down Payment: $5,000
- APR: 6.8%
- Loan Term: 60 months
- Monthly Payment: $389.92
- Total Interest: $8,395.46
- Total Cost: $28,395.46
Mid-Range Car (2024)
- Vehicle Price: $35,000
- Down Payment: $7,000
- APR: 6.5%
- Loan Term: 60 months
- Monthly Payment: $515.62
- Total Interest: $10,937.63
- Total Cost: $38,937.63
Luxury Car (2024)
- Vehicle Price: $50,000
- Down Payment: $10,000
- APR: 6.2%
- Loan Term: 60 months
- Monthly Payment: $735.47
- Total Interest: $14,128.20
- Total Cost: $54,128.20
Understanding Car Loan Terms
Loan-to-Value (LTV) Ratio
The LTV ratio shows how much you’re borrowing compared to the car’s value. Calculate it by dividing your loan amount by the vehicle’s value. Lenders prefer LTV under 80% and typically offer better rates for lower ratios. An LTV over 100% means you’re "underwater" on the loan.
APR vs. Interest Rate
APR (Annual Percentage Rate) includes the interest rate plus fees, making it the true cost of borrowing. The interest rate is just the principal cost. Always compare APRs when shopping for loans, not just interest rates.
Why Loan Term Matters
A 48-month loan costs significantly less in total interest than a 72-month loan on the same vehicle. However, the 72-month loan has a lower monthly payment. Choose based on your budget and long-term financial goals. Generally, shorter terms save money.
5 Tips to Save Money on Car Loans
- ✓Make a Larger Down Payment: Putting 20% down significantly reduces interest costs and improves your loan terms
- ✓Improve Your Credit Score: A higher credit score can lower your APR by 2-5%, saving thousands over the loan term
- ✓Choose a Shorter Loan Term: 48-month loans cost less in total interest than 72-month loans, even with higher monthly payments
- ✓Shop Around for Rates: Compare APRs from banks, credit unions, and dealerships to get the best rate
- ✓Make Extra Principal Payments: Even small additional principal payments reduce total interest and payoff time
Frequently Asked Questions
What is the average car loan term?
The average new car loan is 60-67 months (5-5.5 years). Used car loans average 48-60 months (4-5 years). Longer terms result in lower monthly payments but higher total interest paid.
What is a good APR for a car loan?
A good APR depends on your credit score and market conditions. Excellent credit (750+): 3-5%, Good credit (700-749): 5-8%, Fair credit (650-699): 8-12%, Poor credit (<650): 12%+. Check current rates from multiple lenders.
What does LTV ratio mean?
LTV (Loan-to-Value) ratio is the loan amount divided by the vehicle value. A lower LTV (under 100%) means you're borrowing less than the car's value. Lenders prefer LTV under 80% for better rates.
Should I get a longer loan term?
Longer terms lower your monthly payment but increase total interest paid. A 72-month loan costs significantly more in interest than a 48-month loan. Only choose longer terms if you cannot afford higher monthly payments.
What is included in car loan payments?
Your monthly payment covers only principal and interest. Insurance, registration, maintenance, and fuel are separate. Some lenders include gap insurance in the loan amount.
How much should I put down on a car?
Financial experts recommend 10-20% down payment. This reduces the loan amount, lowers monthly payments, and can help you get a better APR. For vehicles over $30K, 20% is ideal.
Can I pay off a car loan early?
Yes, most car loans allow early payoff without penalties. Paying extra principal each month or making lump sum payments saves significant interest. Check your loan terms for prepayment penalties (rare but possible).
How is car loan interest calculated?
Car loans typically use simple interest calculated monthly. The formula is: Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1], where P is principal, r is monthly rate, and n is number of payments.
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