Plan Your Car Loan with Ease

Our Car Loan Calculator helps you plan your auto financing by estimating monthly payments and total interest. Enter your loan details to see the cost breakdown.

How to Use the Car Loan Calculator

1. Enter the loan amount (e.g., $25,000) for the car purchase.
2. Input the interest rate (e.g., 5%) for the loan.
3. Specify the loan term (e.g., 5 years).
4. Enter the down payment (e.g., $5,000) to reduce the loan amount.
5. Click Calculate Loan to view monthly payments, total interest, and a cost breakdown chart.

The Logic Behind It

The calculator uses the loan amortization formula to compute monthly payments:
M = P × (r × (1 + r)^n) / ((1 + r)^n - 1)
Where:
- M = Monthly Payment
- P = Loan Amount (Loan Amount - Down Payment)
- r = Monthly Interest Rate (Annual Rate / 12)
- n = Number of Payments (Loan Term × 12)
Total Interest = (Monthly Payment × Number of Payments) - Loan Amount. The pie chart shows the proportion of principal versus interest in the total cost.

Benefits of Using the Car Loan Calculator

• Clarity: Understand your monthly car loan payments.
• Planning: Budget for total loan costs, including interest.
• Insight: See the impact of down payments and loan terms.
• Visualization: View the cost breakdown with a chart.

Disclaimer: This is an estimate based on simplified assumptions. Consult a lender for precise loan terms.