Car Loan Calculator
Calculate monthly payment and total cost for a vehicle loan.
How to get the best car loan
The interest rate has the biggest impact on total cost. A $30,000 loan at 5% over 60 months costs $3,968 in interest. The same loan at 10% costs $8,149 — more than double. Shopping multiple lenders (banks, credit unions, and online) before visiting a dealership typically saves 1–3 percentage points.
Down payment and trade-in reduce your loan balance directly. A 20% down payment not only lowers the monthly payment but also prevents being "underwater" — owing more than the car is worth — which happens quickly as new cars lose 15–20% of value in the first year.
Loan term length is a trade-off: longer terms (72–84 months) shrink the monthly payment but dramatically increase total interest and leave you with negative equity longer. For a depreciating asset, a shorter term is almost always the financially smarter choice.
True cost of car ownership
This calculator covers the purchase and financing cost. The full cost of ownership also includes:
- Insurance — typically $1,000–3,000/year depending on vehicle and driver
- Fuel — $1,500–3,000/year at average driving distances
- Maintenance — oil changes, tires, brakes; budget ~$0.10/mile
- Depreciation — new cars lose ~$3,000–5,000 in value the first year
- Registration and taxes — varies by state, typically $100–500/year
AAA estimates the full cost of owning a new car averages around $10,000–12,000 per year in the US.
Frequently Asked Questions
Loan amount = (Vehicle price − down payment − trade-in value) × (1 + sales tax rate). The monthly payment uses the standard EMI formula applied to this loan amount.