Car Loan Calculator
Calculate your monthly car payment, total interest cost, and true cost of ownership including depreciation.
A $30,000 car financed at 7% APR for 60 months has a monthly payment of $594 and costs $5,639 in interest. But that car depreciates by roughly 50% in 5 years — the total economic cost including depreciation is closer to $20,000. This calculator shows the full picture.
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Car Loan Calculator
Vehicle price · Down payment · Trade-in · Rate · Term
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Your vehicle & loan
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Results
Amount financed
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Monthly payment
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Total payments
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Total interest paid
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Vehicle value at end of loan
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Total economic cost (incl. depreciation)
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How it's calculated
Car loan payment and true ownership cost
Amount financed = Price − Down payment − Trade-in
Monthly payment = Principal × r / (1 − (1+r)^-n)
where r = APR/12, n = loan term months
Total interest = Total payments − Principal
Vehicle value at loan end = Price × (1 − depreciation%)
(new cars: ~50% in 5 years, ~30% in 3 years)
Economic cost = Total paid − Vehicle end value
- APR (Annual Percentage Rate)
- The yearly interest rate on your loan. For car loans, APR includes any dealer fees rolled into the rate.
- Trade-in value
- The amount a dealer credits for your current vehicle. Reduces the amount financed.
- Depreciation
- The loss of vehicle value over time. New cars lose ~20% in year 1, 15% in year 2, 13%/yr thereafter. Used cars depreciate slower.
- 20/4/10 rule
- Car buying guideline: 20% down, max 4-year loan, total car costs <10% of gross income.
Disclaimer: depreciation estimates are averages. Actual depreciation varies by brand, model, mileage, and condition. Consult market data for your specific vehicle.
Frequently asked questions
What is a good APR for a car loan in 2026?
Good credit (720+): 5–7% for new; 6–9% for used. Average credit (660–720): 8–12%. Credit unions typically offer 0.5–1.5% lower than banks and dealers. Always get pre-approved before visiting a dealership so you can compare the dealer's offer.
What loan term is best for a car?
36–48 months is recommended. 60 months is common and manageable. Avoid 72–84 months: lower payments come at higher total interest cost, and you risk being "upside down" (owing more than the car is worth) as depreciation outpaces principal paydown.
What is the 20/4/10 car buying rule?
Put at least 20% down, finance for no more than 4 years, and keep total monthly vehicle costs (payment + insurance) under 10% of gross monthly income. This prevents becoming "car poor" — having a car you can technically afford monthly but that dominates your budget.
Should I buy or lease?
Lease if: you want a new car every 3 years and drive under 15,000 miles/yr. Buy if: you plan to keep the car long-term (>5 years). Buying is generally cheaper over a 7–10 year horizon because you eventually own an asset — while leasing means perpetual payments.