Car Loan Calculator

Calculate your car loan EMI, total interest, and monthly payments. Compare different auto loan terms to find the best financing option for your vehicle.

Car Loan Details

$5K $100K
$0 $50K
Down payment percentage: 16.7%
1% 15%
1 Year 8 Years

Calculation Results

Monthly Payment
$483
Loan Amount
$25,000
Total Interest
$3,980
Total Cost of Car
$33,980

Payment Breakdown

Car Price: $30,000
Down Payment: $5,000
Number of Payments: 60 months
Interest vs Principal: 13.7% : 86.3%

Understanding Car Loans

How Car Loans Work

A car loan is a secured loan where the vehicle serves as collateral. This typically results in lower interest rates compared to unsecured loans. The loan amount is the car price minus your down payment.

Benefits of a Larger Down Payment

A larger down payment reduces your loan amount, monthly payments, and total interest paid. It also helps you avoid being "upside down" on your loan (owing more than the car's worth).

Factors Affecting Car Loan Rates

  • Credit Score: Higher scores qualify for better rates
  • Loan Term: Shorter terms usually have lower rates
  • Vehicle Age: New cars often get better rates than used
  • Down Payment: Larger down payments can improve rates
  • Debt-to-Income Ratio: Lower ratios are preferred by lenders
  • Lender Type: Banks, credit unions, and dealers offer different rates