Calculate monthly car payments and total interest for any auto loan.
Monthly payments and total cost of your car loan
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Always double-check important financial decisions with a qualified professional. This calculator provides estimates for guidance purposes. Results may vary based on your specific circumstances.
New cars lose roughly 20% of their value in the first year and 60% by year five — the steepest depreciation curve of any major purchase most people make. A 2-3 year old used car often offers nearly-new condition at a substantially lower price, having already absorbed the worst of that depreciation hit.
The loan term matters as much as the price. Stretching a car loan to 72 or 84 months lowers the monthly payment but dramatically increases total interest paid — and risks being "upside down" (owing more than the car is worth) for years, which is dangerous if you need to sell or trade in early.
A useful rule of thumb: total car costs (payment, insurance, fuel, maintenance) shouldn't exceed 15-20% of take-home pay. Many buyers focus only on the loan payment and forget insurance often costs $100-250/month extra, and maintenance adds up over time.
Use the calculator above to compare loan terms and see how a shorter term, despite a higher monthly payment, often saves thousands in total interest over the life of the loan.