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Cars.com Auto Calculator

Reviewed by Calculator Editorial Team

Calculate your car loan payments, interest rates, and financing options with our Cars.com Auto Calculator. Whether you're buying a new or used car, this tool helps you estimate monthly payments, total interest paid, and loan affordability.

How to Use This Calculator

Using our Cars.com Auto Calculator is simple:

  1. Enter the loan amount (the price of the car).
  2. Input the down payment (if applicable).
  3. Specify the loan term in years.
  4. Enter the annual interest rate (APR).
  5. Click Calculate to see your monthly payment and other details.

The calculator will display your estimated monthly payment, total interest paid over the life of the loan, and the total amount paid (principal + interest).

Formula Used

The monthly payment for an auto loan is calculated using the standard loan payment formula:

Monthly Payment = P × (r(1 + r)^n) / ((1 + r)^n - 1)

Where:

  • P = Principal loan amount (loan amount - down payment)
  • r = Monthly interest rate (annual rate / 12)
  • n = Number of payments (loan term in years × 12)

This formula accounts for both the principal and interest portions of your loan payment.

Worked Example

Let's calculate the monthly payment for a $25,000 car loan with a 5% annual interest rate and a 5-year term.

  1. Principal (P) = $25,000
  2. Annual interest rate = 5% → Monthly rate (r) = 5% / 12 = 0.4167%
  3. Loan term (n) = 5 years × 12 = 60 months

Plugging these values into the formula:

Monthly Payment = $25,000 × (0.004167 × (1 + 0.004167)^60) / ((1 + 0.004167)^60 - 1)

Monthly Payment ≈ $454.23

Over 5 years, you would pay approximately $27,254 in total, with $2,254 going toward interest.

Frequently Asked Questions

What is the difference between APR and interest rate?
APR (Annual Percentage Rate) is the total cost of credit over one year, including fees and other charges. The interest rate is the actual percentage charged on the loan amount. APR is typically higher than the interest rate.
How does a down payment affect my monthly payment?
A larger down payment reduces the principal amount you need to finance, which typically lowers your monthly payment. However, it also means you pay more upfront out of pocket.
Can I refinance my car loan?
Yes, refinancing can lower your interest rate and monthly payment if interest rates have decreased since you originally took out the loan. However, there may be fees associated with refinancing.