Car Loan Calculator
Calculate your monthly car payment and see how different loan terms and interest rates affect your total cost. Make informed decisions about your auto financing.
Chase Auto
Get pre-qualified for auto financing today
Important Legal Disclaimer
For Educational and Informational Purposes Only: This calculator provides estimates and approximations based on the information you provide. Results are not exact and should not be relied upon for any official, legal, financial, medical, or professional purposes.
No Professional Advice: The calculations and information provided do not constitute financial advice, legal advice, tax advice, medical advice, or any other form of professional consultation. Always consult with qualified professionals (financial advisors, attorneys, tax professionals, healthcare providers, etc.) before making important decisions.
No Liability: By using this calculator, you acknowledge that the results are estimates only. We make no warranties or guarantees about the accuracy, completeness, or reliability of the calculations. Use of this tool is at your own risk.
This disclaimer complies with applicable U.S. federal and state laws regarding the provision of informational tools and the limitation of liability for educational resources.
Abbreviations Explained
APR (Annual Percentage Rate): The yearly cost of the auto loan including interest and fees, expressed as a percentage.
Principal: The original amount borrowed to purchase the vehicle, excluding interest charges.
Interest: The cost of borrowing money, calculated based on the loan amount, interest rate, and loan term.
Loan Term: The length of time (in months) you have to repay the loan. Common terms are 36, 48, 60, or 72 months.
Down Payment: The upfront cash payment made toward the vehicle purchase, which reduces the loan amount.
Trade-in Value: The amount credited toward your purchase if you trade in your current vehicle.
How the Calculation Works
This calculator uses the standard auto loan payment formula:
Where:
- M = Monthly payment
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12)
- n = Total number of monthly payments
Example: $25,000 loan at 5.5% APR for 60 months:
• P = $25,000
• r = 0.055 ÷ 12 = 0.00458
• n = 60 payments
• Monthly payment = $476
• Total interest = $3,560
Understanding Car Loans
A car loan is a secured loan where the vehicle serves as collateral. Understanding the key components helps you make better financing decisions:
- Loan Amount: The total amount borrowed, typically the vehicle price minus your down payment.
- Interest Rate: The annual percentage rate (APR) charged by the lender, which varies based on credit score and market conditions.
- Loan Term: The length of time to repay the loan, commonly 36, 48, 60, or 72 months.
- Monthly Payment: Fixed amount paid each month, covering both principal and interest.
Tip: A larger down payment and shorter loan term can save you thousands in interest over the life of the loan.
Find Auto Loan Providers
Compare rates from these trusted auto financing companies:
Apply for Car Loans by City
Get auto financing in major US cities: