Car Loan Interest Calculator
Estimate your monthly car payment, total interest cost, and total amount repaid based on your loan amount, APR, and loan term.
Enter Your Loan Details
Adjust the loan amount, interest rate and repayment term.
A lower APR usually reduces both your monthly payment and the total interest paid over the life of the loan.
See How APR Changes Your Total Interest
Compare nearby interest rates using the same loan amount and term.
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How Car Loan Interest Is Calculated
Car loan interest is generally calculated using your outstanding loan balance, annual percentage rate (APR), and repayment term.
A higher APR normally increases both the monthly payment and the total interest paid. A longer term can reduce the monthly payment, but may increase the total interest cost because you are borrowing the money for a longer period.
How to Use the Car Loan Interest Calculator
Our Car Loan Interest Calculator helps you estimate how much interest you may pay when financing a vehicle. Enter your loan amount, annual percentage rate (APR), and loan term to calculate your estimated monthly payment, total interest, and total amount repaid.
You can change the loan amount, APR, or repayment period to see how different financing options may affect the overall cost of your car loan. This can be useful when comparing offers from banks, credit unions, dealerships, or other lenders.
How Car Loan Interest Is Calculated
Car loan interest depends mainly on the amount borrowed, your APR, and the length of the loan. A higher interest rate generally increases both your monthly financing cost and the total interest paid over the life of the loan.
A longer loan term may reduce the monthly payment, but it can also increase the total amount of interest you pay. Use the Car Loan Interest Calculator to compare different rates and loan terms and understand how these changes may affect the overall cost of an auto loan.
Loan Amount
The loan amount is the amount you finance after accounting for factors such as your down payment and, where applicable, trade-in value. Borrowing a larger amount generally results in higher monthly payments and more interest paid over the life of the loan.
Annual Percentage Rate (APR)
The APR represents the annual cost of borrowing expressed as a percentage. Even a relatively small difference in APR can affect the total interest paid, especially on larger loans or loans with longer repayment periods.
Loan Term
The loan term is the amount of time you have to repay the loan. Common auto loan terms include 36, 48, 60, 72, and 84 months. Shorter terms usually mean higher monthly payments but may result in less total interest, while longer terms can lower the monthly payment but may increase the total borrowing cost.
Example of Car Loan Interest
For example, financing $25,000 for 60 months at a 6.5% APR produces an estimated monthly payment of about $489. The exact result can vary depending on the calculation method and loan terms. Your actual payment may also differ depending on lender terms, fees, taxes, credit profile, and other factors.
Using the Car Loan Interest Calculator with different APRs and repayment terms can help you see how even a small change in the interest rate may affect your monthly payment and total borrowing cost.
Compare Your Car Financing Options
Before choosing a loan, try different APRs and repayment periods. You can also use our Car Loan Finance Calculator to estimate the complete financing cost, including down payment, trade-in value, sales tax, and additional fees.
If you are considering more than one financing offer, use our Car Loan Comparison Calculator to compare different loan amounts, interest rates, terms, and estimated costs.
Important Car Loan Interest Considerations
Before financing a vehicle, compare the APR, loan term, fees, monthly payment, and total amount you will repay. A lower monthly payment does not necessarily mean a less expensive loan, particularly when the repayment period is longer.
The Car Loan Interest Calculator is best used as an estimation tool when comparing possible financing scenarios. Always review the actual APR, fees, payment schedule, and total cost provided by your lender before accepting an auto loan.
For additional information about financing a vehicle and comparing loan offers, visit the Federal Trade Commission guide to financing or leasing a car .
Our calculator provides estimates for informational and educational purposes only. It does not constitute financial, tax, legal, or lending advice. Actual APRs, monthly payments, fees, taxes, and loan terms can vary depending on the lender, borrower, location, and financing agreement.
