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Car Loan Calculator FullScreen

Estimate monthly loan payments for purchasing a car using our online calculator. By inputting key parameters such as the car price, down payment, interest rate, and loan term, you can calculate the amount you need to pay each month.

Car Loan Repayment Calculator


Car Loan Repayment Term
1 Year
12 months
3 Years
36 months
5 Year
60 months
10 Years
120 months


Car Loan Formula

The Car Loan Calculator uses the following basic formula:

Monthly Car Loan Payment = { Rate + Rate / [(1 + Rate) months -1] } x Principal Car Loan Amount


Rate (Monthly Interest Rate) = Decimal Rate / 12 , or Rate = (Annual Interest Rate / 100) / 12

Things to Consider When Taking Out a Car Loan

  • Affordable: Make sure that you are able to afford the repayments that are to come on your car loan. You are the only one who really knows whether or not you can invest in a new car, and whether or not taking out loans will only cause more financial struggles in the future.
  • Look At Different Companies: Before you even consider the loan, take a look at a variety of different companies. Check out both banks and lender companies. Find out how flexible they are as a business, and the rates that they offer. Be careful when looking at car dealerships when taking out a loan, banks are usually quite a bit cheaper than car dealerships.
  • Research: It's important to research on better deals. It's not uncommon for to banks run promotions at certain times of the year, so never presume that one bank is better than the other. Banks are a lot cheaper when it comes to interest than car dealerships.
  • Interest Rates: Make sure you fully read into the interest rates applied to the car loan. You may think that you are getting an incredibly deal with a low-interest rate, but on the other hand you may have to pay that loan off for another couple of years meaning you are paying a noticeably larger amount.
  • Borrow Little, Repay Quickly: It's important that you don't get out of your depths with your loan. Borrow the minimum amount you need to take out the loan, and repay it as soon as you can.
  • Pay Day Loans: Never use a Pay Day lender, this is a fantastic way to completely destroy your financial credibility. These lenders have no consideration of your well-being and will help destroy your financial situation as long as it benefits them. Avoid them at all costs.
  • Don't Lend at All: Although it may be difficult in the current day and age, try to avoid taking out a loan all together. It may be tempting to get that little extra money to buy your car, but it will feel a lot better if you earn the money yourself.
  • Understand that you do not own the company. The car is the legal responsibility of the financial company and definitely not you. Until you have paid the final payment, you do not own the car.
  • There are normally mileage restrictions included in PCP contracts. This restriction is usually annually and if you exceed the limitation you will be subject to being charged additional fees if you choose not to pay the final payment.
  • Once you have signed the contract and choose that it is no longer the car you want, or your overall circumstances change, you are able to cancel the contract although there are fees including in doing that.
  • As much as you want to, you cannot make any modifications to the vehicle. New wheels? Tinted windows? Don't as much as think about it. Remember, it isn't your car, you can't make these sorts of changes to it.

What is Car Loan Calculator

A Car Loan Calculator is a financial tool used to estimate the monthly payment amount and total cost of borrowing for a car loan. It helps individuals evaluate different loan options, determine affordability, and make informed decisions about financing a vehicle purchase.

Here's how a typical Car Loan Calculator works:

  1. Loan Amount: You input the total amount of money you plan to borrow for purchasing a car. This includes the purchase price of the vehicle minus any down payment or trade-in value.

  2. Interest Rate: The calculator allows you to input the annual interest rate associated with the car loan. This rate determines the cost of borrowing money.

  3. Loan Term: You specify the duration or time period over which you will repay the car loan. Common terms are usually 36, 48, or 60 months.

  4. Down Payment: You input the amount of money you plan to contribute as a down payment towards the purchase of the car. A higher down payment reduces the loan amount and monthly payments.

  5. Trade-in Value: If you have a vehicle to trade in, you can input its estimated value. This value is deducted from the loan amount, reducing the amount borrowed.

  6. Calculation: Using the provided inputs, the Car Loan Calculator calculates the estimated monthly payment amount required to repay the loan within the specified term. It takes into account the loan amount, interest rate, loan term, down payment, and trade-in value (if applicable) to determine the payment amount.

  7. Displaying the Result: The calculator presents the calculated monthly payment amount, along with the total cost of borrowing over the loan term. It may also display an amortization schedule showing the breakdown of each payment towards principal and interest.

The Car Loan Calculator allows individuals to assess their ability to finance a car purchase and make informed decisions based on affordability. It helps borrowers understand the financial commitment associated with the loan and enables them to compare different loan options based on interest rates, loan terms, and down payment/trade-in values.

It's important to note that the calculated results are estimates based on the provided inputs and assumptions. Actual loan terms, interest rates, fees, and specific terms may vary depending on factors such as creditworthiness, lender policies, and market conditions. Therefore, it's advisable to consult with a qualified financial advisor or lender for accurate and personalized information regarding car loan calculations and available options.

Car Loan Calculator Example

Certainly! Here's an example of a Car Loan Calculator that helps you determine the monthly installment and total repayment amount for a car loan based on the principal amount, interest rate, loan term, and down payment:

Let's assume we have the following car loan details: Car Price: $25,000 Down Payment: $5,000 Loan Term: 5 years (60 months) Interest Rate: 4% per year

To calculate the loan amount, we subtract the down payment from the car price:

Loan Amount = Car Price - Down Payment Loan Amount = $25,000 - $5,000 = $20,000

Next, we can calculate the monthly interest rate by dividing the annual interest rate by 12:

Monthly Interest Rate = Annual Interest Rate / 12 Monthly Interest Rate = 4% / 12 = 0.00333 (rounded to five decimal places)

Now, we can calculate the monthly installment using the formula:

Monthly Installment = (Loan Amount * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^(-Loan Term))

Monthly Installment = ($20,000 * 0.00333) / (1 - (1 + 0.00333)^(-60)) Monthly Installment = $379.15 (rounded to two decimal places)

Therefore, the monthly installment for a car loan with a principal of $20,000, a 4% interest rate, a 5-year loan term, and a $5,000 down payment would be approximately $379.15.

To calculate the total repayment amount, we multiply the monthly installment by the number of months:

Total Repayment Amount = Monthly Installment * Loan Term Total Repayment Amount = $379.15 * 60 = $22,749 (rounded to two decimal places)

Therefore, the total repayment amount for the car loan would be approximately $22,749.

Please note that this calculation assumes a simple interest model without considering any additional fees or charges associated with the loan. Additionally, the values used in this example are for illustrative purposes and may not reflect actual car prices, interest rates, down payments, or loan terms.