What is the Car Loan Calculator?
The car loan calculator estimates your monthly payment and the interest you pay over the life of the loan.
How to use the Car Loan tool
- Enter Car price, Annual interest rate and Loan term.
- The result updates instantly as you type, or press Calculate.
- Use Try an example to see how it works, and Reset to start again.
Formula
Payment = L × i ÷ (1 − (1 + i)^−n), where L is the loan amount, i the monthly rate and n the number of months.
Worked example
With car price 25000 $, down payment 5000 $, annual interest rate 7%, loan term 5 years, the monthly payment comes to 396.02. Loan amount: 20,000; Total interest: 3,761.44; Total paid: 28,761.44.
Frequently asked questions
Does a bigger down payment help?
Yes. It lowers the loan amount, the monthly payment and total interest.
Are taxes and fees included?
No. Add them to the price if you are financing them.
Monthly car loan payment at 6%
EMI formula with monthly compounding.
| Loan | 3 years | 5 years | 7 years |
|---|---|---|---|
| 10,000 | 304.22 | 193.33 | 146.09 |
| 15,000 | 456.33 | 289.99 | 219.13 |
| 20,000 | 608.44 | 386.66 | 292.17 |
| 30,000 | 912.66 | 579.98 | 438.26 |
| 40,000 | 1,216.88 | 773.31 | 584.34 |
FAQ
Does a longer term cost more? Yes. Payments fall but total interest rises.
What about a down payment? Subtract it from the price first.
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Checked by Calcovate · Formula tested against worked examples · Updated 8 Nov 2026 · How we check our calculators. General information only, not financial or medical advice.