Calculate your car loan EMI, total interest paid, and complete repayment schedule for any vehicle loan.
This tool calculates your monthly car loan payment, total interest paid, and total loan cost based on the vehicle price, down payment, interest rate, and loan term. It helps buyers budget for a vehicle purchase and compare financing offers.
Loan Amount = Vehicle Price − Down Payment (and Trade-In Value, if applicable). Monthly Payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1], where P is the loan amount, r is the monthly interest rate, and n is the total number of monthly payments.
Enter the vehicle price, down payment amount, interest rate, and loan term, and the calculator returns your estimated monthly payment and total loan cost.
Example: A $30,000 vehicle with a $5,000 down payment, financed at 6% annual interest over 5 years, results in a loan amount of $25,000 and a monthly payment of approximately $483.32.
Why does a larger down payment reduce my monthly payment? A larger down payment reduces the amount actually financed (the loan principal), which directly lowers both the monthly payment and the total interest paid over the loan term, since interest is calculated on the remaining borrowed amount.
How does loan term affect total cost for an auto loan? A longer term (like 72 or 84 months) lowers the monthly payment but increases total interest paid, and can also mean owing more than the car is worth for longer (being "underwater" on the loan) due to vehicle depreciation outpacing loan payoff.
Should I get pre-approved for financing before shopping for a car? Getting pre-approved gives you a clear budget and comparison baseline against dealer financing offers, often strengthening your negotiating position and helping avoid financing surprises during the purchase process.
Does a trade-in vehicle affect the loan calculation? Yes, a trade-in's value typically reduces the amount that needs to be financed, similar to a down payment, lowering both the loan principal and resulting monthly payment.
Why do new and used cars sometimes have different interest rates? Lenders often offer somewhat lower rates for new vehicles compared to used ones, partly reflecting differences in collateral value and risk assessment between new and used vehicle loans.