Clear Car Loan Calculator
See what that car really costs: monthly payment, total interest, and the all-in price after your down payment and trade-in.
| Amount financed | $0 |
| Total interest paid | $0 |
| Total cost of the car | $0 |
| Interest share of total | 0% |
How it works
Amount financed = price + fees − down payment − trade-in. The monthly payment uses the amortization formula M = P × r(1+r)n / ((1+r)n − 1), with r the monthly rate and n the number of payments. Total interest = all payments − amount financed.
Formula & worked example
Formula: Amount financed = price + fees − down payment − trade-in value. The payment then uses the amortization formula M = P × r(1+r)n ÷ ((1+r)n − 1).
Worked example: A $32,000 car with $4,000 down finances $28,000; at 6% over 5 years the payment is $541.32/month.
When to use this
- You are at the dealership and the offer sheet needs translating into total cost before you sign.
- You are choosing between dealer financing and a bank/credit-union pre-approval.
- A longer term is being used to make an unaffordable car look affordable.
- You want the effect of a bigger down payment or your trade-in, in dollars.
How to use it, step by step
- Enter the vehicle price out-the-door, not the sticker fantasy.
- Subtract down payment and trade-in.
- Set the APR and term from the actual offer.
- Add fees and taxes rolled into the loan.
- Read total interest — then shorten the term until the payment just fits, not the reverse.
What the inputs mean
| Input | What it is | Typical values |
|---|---|---|
| Vehicle price | Total price being financed before deductions | Include dealer add-ons to be honest |
| Down payment / trade-in | Cash and equity reducing the amount borrowed | 20% down is the classic target |
| APR | The loan's annual rate | New 5–9%, used 8–14% typical ranges |
| Term | Months/years to repay | 48–60 mo healthy; 72–84 hides cost |
Another worked example
A $28,000 car with $3,000 down and a $2,000 trade-in finances $23,000. At 8.5% over 60 months the payment is $471.88 and total interest $5,312.81 — nearly a quarter of the amount borrowed. The same car over 84 months would cut the payment but push interest past $7,900: the term is where the money leaks.
Frequently asked questions
Should I buy or lease?
Buying wins if you keep cars long-term — after the loan ends you own the asset. Leasing wins for always driving new with lower monthly payments, but you build no equity and pay mileage fees.
How much does the APR change my payment?
A lot: on a $25,000 five-year loan, 5% APR costs ~$472/mo while 10% costs ~$531/mo — about $3,500 more in interest. Try both above.
How much down payment should I put down?
Aim for 20% on new cars (10% on used) to avoid being underwater — owing more than the car is worth — the moment you drive off the lot.
Should fees and taxes be rolled into the loan?
Only if you must — you then pay interest on the tax itself for the whole term. This tool includes them in the financed amount when you enter them, which is exactly how the dealer's contract does it; compare against paying them in cash at signing.
What term should I choose?
The shortest whose payment fits with room to spare — 48–60 months is the usual sweet spot. If the car only works at 72–84 months, the honest read is that the car is too expensive for the budget, because you will owe more than it is worth for years.
🚗 Planning the whole purchase?
Compare financing options with our business loan calculator, or map your debt payoff plan.