Car Loan Calculator
Calculate your car loan payments, total interest, and total cost. Compare loan offers, check affordability, and plan your vehicle purchase with 100% accuracy.
Vehicle & Loan Details
Currency & Country
Vehicle Type
Vehicle Price
Down Payment & Trade-in
Loan Terms
Additional Costs
Credit Information
Advanced Options
Car Loan Calculation Results
Ready to Calculate
Enter your car loan details and click "Calculate Car Loan Payments & Total Cost"
Common Car Scenarios
Current Auto Loan Rates
Car Loan Facts
- Average car loan amount: $35,000
- Average loan term: 68 months (5.7 years)
- New cars depreciate 20% in first year
- 20/4/10 rule: 20% down, 4-year term, 10% of income
- GAP insurance recommended for loans >80% LTV
Monthly Payment Examples
Tips for Better Rates
Country Specific Info
Car Loan Calculator: Make Smart Auto Financing Decisions
A Car Loan Calculator is an essential financial tool for anyone considering purchasing a vehicle. With 100% accuracy, our calculator helps you understand the true cost of car ownership, including monthly payments, total interest, taxes, fees, and depreciation. According to recent data, the average car loan in 2024 is $35,000 with a term of 68 months, making accurate calculations crucial for budgeting.
Our calculator supports 13 major currencies and countries including USD (USA), EUR (EU), GBP (UK), CAD (Canada), AUD (Australia), JPY (Japan), INR (India), CNY (China), MXN (Mexico), BRL (Brazil), ZAR (South Africa), AED (UAE), and SGD (Singapore). It includes country-specific tax rates, registration fees, and average interest rates for accurate calculations worldwide.
How to Use This Car Loan Calculator
Step 1: Vehicle Details
- Select currency and country
- Choose vehicle type (new/used/electric/luxury)
- Enter vehicle price (use quick buttons)
- Set down payment (20% recommended)
Step 2: Loan Terms
- Select loan term (24-84 months)
- Enter interest rate (based on credit score)
- Add sales tax and registration fees
- Include credit score and income
Step 3: Analyze Results
- View monthly payment and total cost
- Check amortization schedule
- See depreciation forecast
- Get affordability analysis
Understanding Car Loan Calculations with 100% Accuracy
The Car Loan Formula
Our calculator uses the standard amortization formula with 100% accuracy:
Example Calculation with 100% Accuracy:
Vehicle: $35,000 | Down Payment: $5,000 (14%) | Trade-in: $0 | Term: 36 months | Rate: 4.5%
Loan Amount: $35,000 - $5,000 = $30,000
Monthly Rate: 4.5% ÷ 12 ÷ 100 = 0.00375
Monthly Payment: $30,000 × [0.00375(1+0.00375)^36] ÷ [(1+0.00375)^36 - 1] = $892.63
Total Payment: $892.63 × 36 = $32,134.68
Total Interest: $32,134.68 - $30,000 = $2,134.68
The 20/4/10 Rule for Car Affordability
| Rule Component | Description | Why It Matters | Example ($35,000 car) |
|---|---|---|---|
| 20% Down Payment | Pay at least 20% of purchase price upfront | Reduces loan amount, avoids negative equity, lowers monthly payment | $7,000 minimum |
| 4-Year Loan Term | Finance for no more than 48 months (4 years) | Saves on interest, aligns with depreciation, builds equity faster | 48 months maximum |
| 10% of Income | Monthly payment ≤ 10% of gross monthly income | Maintains budget flexibility, accounts for other vehicle expenses | $625/month max ($75,000 income) |
Country-Specific Car Loan Information
🇺🇸 United States
- Avg Interest Rate: 4.5-6.5% for new, 6-9% for used
- Sales Tax: 0-10% (varies by state)
- Registration: $100-$500 annually
- Insurance: $1,200-$2,400 annually
🇬🇧 United Kingdom
- Avg APR: 4-8% (typically quoted as APR)
- Road Tax: £0-£2,365 annually
- Insurance: £400-£1,200 annually
- Fuel Cost: £1.40-£1.60 per liter
🇨🇦 Canada
- Avg Rate: 5-7% for new, 7-10% for used
- Sales Tax: 5-15% (GST/HST + PST)
- Insurance: $1,000-$3,000 annually
- Fuel: $1.50-$2.00 per liter
🇦🇺 Australia
- Avg Rate: 5-9% for new cars
- Stamp Duty: 3-6% of vehicle value
- Rego: $600-$1,200 annually
- Fuel: $1.60-$2.20 per liter
Frequently Asked Questions (FAQ)
What's a good interest rate for a car loan in 2024?
For borrowers with excellent credit (740+): 3.5-5% for new cars, 4-6% for used cars.
Good credit (680-739): 5-7% for new, 6-8% for used.
Fair credit (620-679): 7-10% for new, 8-12% for used.
Poor credit (580-619): 10-15% for new, 12-18% for used.
Very poor credit (below 580): 15-25% (consider improving credit first).
Should I get GAP insurance?
GAP (Guaranteed Asset Protection) insurance covers the difference between what you owe
on your loan and the car's actual cash value if it's totaled or stolen. Get GAP insurance if:
• You put less than 20% down
• Your loan term is longer than 60 months
• You're financing a rapidly depreciating vehicle
• You're leasing the vehicle (often required)
Cost: Typically $500-$700 one-time or $20-$40 added to monthly payment.
How much car can I afford based on my income?
Use the 20/4/10 rule as a guideline:
1. 20% down payment
2. 4-year maximum loan term
3. 10% of gross monthly income for total monthly car expenses
Example for $75,000 annual income:
Monthly gross: $6,250
Max monthly car payment: $625 (10%)
With 20% down, 4% interest, 48-month term → Maximum car price: ~$35,000
This includes payment, insurance, fuel, and maintenance.
Is it better to finance through dealer or bank?
Dealer financing pros:
• Convenient (one-stop shopping)
• Manufacturer incentives (0-2.9% special rates)
• May offer better deals to move inventory
Bank/Credit Union pros:
• Often lower rates for good credit
• Pre-approval gives negotiating power
• Relationship discounts for existing customers
Best strategy: Get pre-approved from your bank/credit union, then see if the dealer can beat it.
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