Car Loan Calculator
Down payment, loan term, APR — auto-calculate total cost
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Monthly Payment
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Total Interest
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Car Loan: Cash vs Finance — What Down Payment Works Best?
Higher down payment = less interest. But keep cash for emergencies. Typically 30-50% down with a ≤5-year term is optimal. Compare different scenarios with instant results.
Auto Loan Payment Formula
Standard equal installment formula: M = P × r × (1+r)^n / ((1+r)^n - 1). Total interest = M × n - P. P = financed amount, r = monthly rate, n = months.
Frequently Asked Questions
New car vs used car loan rates — what's the difference?
New car loans typically have lower rates (3-6%), while used car loans are higher (5-10%). Used car terms are also shorter (≤36 months). Use different rates in the calculator to compare.
Are zero-down-payment car deals worth it?
Zero-down means higher total interest and often comes with inflated fees and mandatory insurance packages. Putting down 20-30% significantly reduces overall cost.
Is there a prepayment penalty for auto loans?
Most lenders allow penalty-free prepayment after 12 months. Early payoff can save substantial interest. Simulate this by reducing the loan term in the calculator.