Auto Loan Calculator

An auto loan calculator helps you find out the monthly payment, total interest and full cost of a car loan in advance. It works for financing a new or used car at any bank or dealership — the calculation is not tied to a particular lender.

How to calculate a car loan

Enter the car price and the down payment — in money or as a percentage of the price. Set the term in months and the interest rate (your bank or dealer quotes it at pre-approval). Choose the payment type — annuity or differentiated — and the calculator instantly shows the monthly payment, interest overpayment and a full month-by-month payment schedule.

Annuity or differentiated payment

With an annuity payment the monthly amount stays the same for the whole term: at first you mostly pay interest, towards the end — the principal. With a differentiated payment the principal is repaid in equal parts, so the payment decreases every month and the total interest is usually lower — but the first payments are noticeably higher.

Early car loan repayment

The calculator supports several early repayments, each with a month and an amount. You can choose the recalculation method: reduce the payment (same term, lighter load) or reduce the term (same payment, the loan ends sooner). The latter is usually more beneficial: less interest accrues. The payment schedule shows how the payment changes after each early repayment.

Car loan with a balloon payment

Some dealers offer balloon-payment (buy-back) plans: the loan is split into two parts. The first part is repaid with regular payments over 2–3 years; the second part (usually 20–40% of the car price) is due as a single final payment — or the car is handed back to the dealer to settle the debt. The monthly payment is much lower, but the rate is higher and the car stays encumbered for the whole term. Before calculating, subtract the balloon amount from the loan amount.

Car insurance for a financed vehicle

Until the loan is repaid, the car is collateral for the bank, so the lender almost always requires full coverage insurance (comprehensive plus collision). The premium depends on the make and model, the driver’s age and record, the region and the deductible; it is usually 3–8% of the car price per year. Factor this into your budget — the calculator shows the loan payments themselves.

Annuity payment formula

The monthly payment is calculated as A = P × r / (1 − (1 + r)⁻ⁿ), where P is the loan amount, r is the monthly rate (annual / 12) and n is the term in months. For example, a loan of 2,000,000 at 15% per annum for 5 years: payment ≈ 47,580, overpayment ≈ 854,792.

The calculation is preliminary. Check the exact terms with your bank.

Частые вопросы

What down payment is needed for a car loan?

Usually 10–20% of the car price, though zero-down programs exist. The larger the down payment, the smaller the loan amount, the payment and the overpayment — and the higher the chance of approval.

Is insurance mandatory on a financed car?

Almost always yes: until the loan is repaid, the car is collateral for the bank, and the lender requires full coverage insurance. Such insurance usually costs 3–8% of the car price per year.

Which is better: annuity or differentiated payment?

A differentiated payment accrues less interest, but the first payments are noticeably higher. An annuity payment is easier on the budget. Compare both by switching the payment type.

What is a car loan with a balloon payment?

A plan where 20–40% of the car price is due as a final payment after 2–3 years, or the car is returned to the dealer. The monthly payment is lower, but the rate is higher and the car stays encumbered.

What is better when repaying early: reduce the payment or the term?

Reducing the term is almost always better: the payment stays the same, the debt is repaid faster and less interest accrues.

Does the calculator work for a used car or a motorcycle?

Yes, the calculation is the same for any vehicle loan: a new or used car, a motorcycle or commercial vehicle. Rates for used cars are usually higher — check them with your bank.