Car loan calculator
Dealers quote the monthly payment. This works out what sits behind it: the amount actually financed after deposit and trade-in, the interest over the term, and the full cost of the car once the loan is paid off.
- Amount financed
- $200,000
- Total interest
- $34,794
- Total cost of the car
- $284,794
- Total of all payments
- $234,794
- Sales tax
- $0
- Deposit as a share of the price
- 20.0 %
- Term in years
- 5.0 years
An estimate for comparison, not a credit offer. The lender’s schedule, fees and insurance requirements take precedence.
The formula
Financed = price + tax − deposit − trade-in. Payment M = F · i / (1 − (1 + i)^−n), with i the monthly rate and n the number of months. Total cost = price + tax + interest.
Worked example
A 250,000 car with 50,000 down, financed over 60 months at 6.5%: 200,000 financed, 3,913.23 a month, and 34,794 of interest, so the car costs 284,794 in all.
How to use it
- 1Use the nominal rate from the offer, not a flat rate. A flat rate charges interest on the original amount for the whole term and is roughly double the real cost.
- 2Leave sales tax at zero where it is already included in the price, as it usually is in Europe and Morocco.
- 3Compare the total cost, not the payment. A longer term always lowers the payment and always raises the cost.
Questions people ask
Is a 0% offer really free?
Often the price is the cost: a dealer offering 0% finance is less likely to discount the car. Ask for the cash price, then compare it with the financed total.
What about a balloon payment or a lease?
Those defer part of the price to the end of the contract, which lowers the payment and leaves a large final sum or no ownership. This calculator covers a standard loan that ends with the car paid off.
Last reviewed: 2026-10-20