Auto Loan Calculator
Work out the monthly payment on a car loan and the total interest it carries. The price, the down payment and — above all — the term decide how much the car really costs you.
Your numbers
Result
- Amount financed
- $27,000.00
- Total of payments
- $31,913.85
How the car payment works
The amount financed is the price minus your down payment (cash plus trade-in). That loan is amortized over the term: payment = L × i ÷ (1 − (1 + i)^−n), with i the monthly rate from the APR and n the number of months. A $27,000 loan at 7% over 60 months is about $535 a month.
Longer terms cost more
A 72- or 84-month loan lowers the monthly payment but raises the total interest and keeps you "underwater" (owing more than the car is worth) for longer. A shorter term costs more each month but far less overall. Compare the total-of-payments figure across terms, not just the monthly.
What this leaves out
This is principal and interest on the loan only. The true cost of ownership also includes sales tax and fees (often rolled into the loan), insurance, registration, fuel and maintenance. Budget those separately before deciding what you can afford.
Informational and educational result. Not a substitute for professional advice.
Frequently asked questions
Sources
- Consumer Financial Protection Bureau (CFPB) — Auto loans
- Standard amortization formula for fixed-rate loans
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