Car Loan Calculator

It takes the vehicle price minus your down payment and any trade-in value to get the financed amount, then applies the reducing-balance formula M = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1) to find your equal monthly payment, total interest and total cost over the loan term.

The financed amount (the principal you actually borrow) is the vehicle price minus your down payment minus any trade-in value, floored at zero. A bigger down payment or trade-in lowers the principal and the total interest you pay.

Using the auto-loan EMI formula M = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the financed amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly payments. At 0% interest the payment is simply the principal divided by the number of months.

A larger down payment reduces the amount you finance, which lowers both your monthly payment and the total interest paid over the life of the loan. It can also help you qualify for a better rate.

Yes. The trade-in value is applied to the purchase the same way a down payment is — it lowers the financed principal directly, so you borrow less and pay less interest.

Auto-loan rates depend on your credit, the lender, the loan term and whether the car is new or used. This calculator works with whatever annual rate you enter, so you can compare offers side by side by changing the rate.

A longer term lowers your monthly payment but increases the total interest you pay. A shorter term means higher monthly payments but less interest overall. Try a few terms in the tenure field to see the trade-off.

Interest is charged only on the outstanding balance, which shrinks with every payment. So early payments are mostly interest and later ones are mostly principal, even though the monthly payment stays the same. This calculator generates the full month-by-month schedule.

With a promotional 0% APR there is no interest, so the monthly payment is just the financed amount divided by the number of months, and the total interest is zero.

No. It models only the loan principal and interest. Dealer fees, registration and road tax, insurance, GAP cover and extended warranties are not included unless you roll them into the vehicle price yourself.

Yes — the reducing-balance EMI formula is identical. Only the typical loan amount, interest rate and tenure differ. Car loans usually run 3 to 8 years, shorter than home loans.

Total interest is the sum of all monthly payments minus the financed principal. The calculator shows this figure directly, and the amortisation schedule breaks down how much interest you pay each month.

Most car loans allow early repayment, and doing so reduces the total interest you pay because interest is charged on the outstanding balance — the sooner that balance reaches zero, the less interest accrues. Check your loan agreement first: some lenders include a prepayment penalty, though this is less common on standard reducing-balance auto loans. This calculator models a fixed schedule; to see how early payoff helps, simply reduce the tenure and compare the total interest figures.

Yes. Refinancing means taking a new loan — ideally at a lower rate or shorter term — to pay off the existing one. It makes most sense early in the loan when the outstanding balance is still high and the interest saving is largest. Use this calculator to compare your current monthly payment and total interest against what a new rate or term would produce, then factor in any refinancing fees before deciding.

Both routes have merit. Going directly to a bank or credit union first gives you a pre-approved rate you can use as a benchmark — if the dealer can beat it, take the dealer deal; if not, use your own financing. Dealer financing can be convenient and sometimes carries manufacturer-subsidised rates on new models, but the interest rate may be marked up. Getting at least one independent quote before you walk into the showroom puts you in a stronger negotiating position.

A widely cited guideline is the 20/4/10 rule: put at least 20% down, finance for no more than four years (48 months), and keep total monthly vehicle costs — loan payment, insurance, fuel and maintenance — below 10% of your gross monthly income. It is a rule of thumb rather than a hard limit, but it helps prevent a vehicle purchase from crowding out other financial goals. Use the tenure and down-payment fields here to find a combination that fits your budget.