0 Percent Car Finance Calculator

Use this 0 percent car finance calculator to determine your monthly payments, total interest, and loan cost for a 0% interest car loan. A 0% interest loan means you won't pay any interest during the promotional period, but you will pay interest after the promotional period ends.

How to Use This Calculator

To use the 0 percent car finance calculator:

Enter the loan amount you want to borrow.
Enter the loan term in months.
Enter the promotional period in months (the period with 0% interest).
Enter the annual percentage rate (APR) that applies after the promotional period.
Click "Calculate" to see your monthly payments and total loan cost.

The calculator will show you:

Monthly payment during the promotional period (0% interest)
Monthly payment after the promotional period (with interest)
Total interest paid over the life of the loan
Total amount paid (principal + interest)

How a 0% Car Loan Works

A 0% interest car loan is a promotional offer where the lender provides a period of time during which you pay no interest on your loan. After this promotional period ends, you will begin paying interest at the standard APR.

The loan is structured in two parts:

Promotional period: You pay only the principal amount each month.
Standard repayment period: You pay both principal and interest according to the standard APR.

Important: Even though you pay no interest during the promotional period, you are still responsible for repaying the full loan amount plus any fees or charges associated with the loan.

Example Calculation

Let's look at an example to understand how a 0% car loan works.

Example Scenario

Loan amount: $20,000

Loan term: 60 months (5 years)

Promotional period: 36 months (3 years)

APR after promotional period: 5%

Using the calculator, we find:

Monthly payment during promotional period: $555.56
Monthly payment after promotional period: $363.24
Total interest paid: $1,800.00
Total amount paid: $21,800.00

In this example, you pay $555.56 per month for the first 3 years, then switch to $363.24 per month payments for the remaining 2 years. The total interest paid is $1,800, and the total amount paid is $21,800.

Frequently Asked Questions

What is a 0% interest car loan?

A 0% interest car loan is a promotional offer where you pay no interest on your loan during a specified promotional period. After this period ends, you will begin paying interest at the standard APR.

How do I qualify for a 0% interest car loan?

Qualification requirements vary by lender, but generally you'll need good credit, a steady income, and to meet the lender's specific criteria for the promotional offer.

What happens if I don't pay off the loan during the promotional period?

If you don't pay off the loan during the promotional period, you will continue making payments at the 0% rate until the promotional period ends. After that, your payments will include interest at the standard APR.

Are there any fees associated with a 0% interest car loan?

Yes, most 0% interest car loans have fees associated with them, such as origination fees, documentation fees, or prepayment penalties. Make sure to factor these fees into your total loan cost.