Car Loan Calculator
Calculate monthly payments, total interest & cost of financing
Currency
Results
| Vehicle Price | $25,000 |
| Down Payment | $5,000 |
| Trade-in Value | $0 |
| Loan Amount | $20,000 |
| Monthly Payment | $391.32 |
| Total Interest | $3,479 |
| Total Cost of Car | $28,479 |
Related Financial Tools
Frequently Asked Questions
How is a car loan monthly payment calculated?
Monthly payment = P x r(1+r)^n / ((1+r)^n – 1), where P is the loan principal, r is the monthly interest rate (APR / 12), and n is the number of payments. A $20,000 loan at 6.5% APR for 60 months gives a monthly payment of about $391.
What is a good interest rate for a car loan?
Borrowers with excellent credit (720+) typically qualify for 3-6% APR. Average credit (660-719) often sees 6-10% APR. Rates above 15% indicate a high-risk borrower profile.
Should I make a larger down payment on a car?
A larger down payment reduces your loan principal, lowering monthly payments and total interest paid. A 20% down payment is commonly recommended to avoid being upside-down on the loan as the car depreciates.
What loan term should I choose for a car loan?
Shorter terms (36-48 months) mean higher monthly payments but less total interest. Longer terms (72-96 months) lower monthly payments but raise total cost. Most advisors recommend 60 months or fewer.