Car Loan Calculator
Calculate your monthly car payment, total interest cost, and true cost of ownership including depreciation.
A $30,000 car financed at 7% APR for 60 months has a monthly payment of $594 and costs $5,639 in interest. But that car depreciates by roughly 50% in 5 years — the total economic cost including depreciation is closer to $20,000. This calculator shows the full picture.
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Car Loan Calculator
Vehicle price · Down payment · Trade-in · Rate · Term
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Your vehicle & loan
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Results
Amount financed
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Monthly payment
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Total payments
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Total interest paid
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Vehicle value at end of loan
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Total economic cost (incl. depreciation)
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How it's calculated
Car loan payment and true ownership cost
Amount financed = Price − Down payment − Trade-in
Monthly payment = Principal × r / (1 − (1+r)^-n)
where r = APR/12, n = loan term months
Total interest = Total payments − Principal
Vehicle value at loan end = Price × (1 − depreciation%)
(new cars: ~50% in 5 years, ~30% in 3 years)
Economic cost = Total paid − Vehicle end value
- 1Amount financed—
- 2Monthly payment—
- 3Total interest—
- 4Total of payments—
- APR (Annual Percentage Rate)
- The yearly interest rate on your loan. For car loans, APR includes any dealer fees rolled into the rate.
- Trade-in value
- The amount a dealer credits for your current vehicle. Reduces the amount financed.
- Depreciation
- The loss of vehicle value over time. New cars lose ~20% in year 1, 15% in year 2, 13%/yr thereafter. Used cars depreciate slower.
- 20/4/10 rule
- Car buying guideline: 20% down, max 4-year loan, total car costs <10% of gross income.
🔢 Worked example
A $30,000 car with $6,000 down finances $24,000 at 7% APR over 60 months: the payment is about $475/month. You pay roughly $28,500 in total — about $4,500 in interest.
Disclaimer: depreciation estimates are averages. Actual depreciation varies by brand, model, mileage, and condition. Consult market data for your specific vehicle. Always confirm with an official source before deciding.
Frequently asked questions
What is a good APR for a car loan in 2026?
Good credit (720+): 5–7% for new; 6–9% for used. Average credit (660–720): 8–12%. Credit unions typically offer 0.5–1.5% lower than banks and dealers. Always get pre-approved before visiting a dealership so you can compare the dealer's offer.
What loan term is best for a car?
36–48 months is recommended. 60 months is common and manageable. Avoid 72–84 months: lower payments come at higher total interest cost, and you risk being "upside down" (owing more than the car is worth) as depreciation outpaces principal paydown.
What is the 20/4/10 car buying rule?
Put at least 20% down, finance for no more than 4 years, and keep total monthly vehicle costs (payment + insurance) under 10% of gross monthly income. This prevents becoming "car poor" — having a car you can technically afford monthly but that dominates your budget.
Should I buy or lease?
Lease if: you want a new car every 3 years and drive under 15,000 miles/yr. Buy if: you plan to keep the car long-term (>5 years). Buying is generally cheaper over a 7–10 year horizon because you eventually own an asset — while leasing means perpetual payments.
What is a good interest rate for a car loan?
In 2026, average new car loan rates are approximately 6–8% APR for buyers with good credit (700+ score). Used car rates are typically 1–2% higher. Rates vary by credit score, loan term, and lender. Credit unions often offer 0.5–1.5% lower rates than dealerships.
Should I finance a car or pay cash?
If the loan rate exceeds what you'd earn investing the cash (typically 6–8% APR vs 7% market return), paying cash saves money. If you can invest at a higher return than the loan rate, financing can make sense. Psychologically, many prefer being debt-free on a depreciating asset.
Are my results saved? Do I need an account?
No account or sign-up needed. Every calculation is saved automatically in your own browser, and you can also pin a result with the save button. Nothing is sent to any server: the data stays on your device and can be erased at any time with the clear button.
How do I track my progress over time?
From the fourth entry onward a “View comparison chart” button appears, opening a line chart with every entry in time order plus an indicator panel: total change, average per entry, lowest and highest value and the period covered. You can also export the history as CSV.
About this calculator
The car loan calculator uses the standard amortization method (fixed monthly payments) to show your monthly payment, the total amount paid and how much of it goes to interest when financing a car.
Monthly rates on auto loans tend to be high. Over long terms, the interest can add up to a large share of the price of the vehicle itself — this calculator makes that cost visible before you sign the contract.