Car Loan Calculator
Calculate your car loan payments, compare lease vs buy options, and understand the total cost of ownership.
How to Use This Calculator
- Enter the car price and your down payment amount
- Add trade-in value if applicable
- Select your loan term (36, 48, 60, or 72 months)
- Enter the interest rate
- Add annual ownership costs (insurance, maintenance, fuel, registration)
- Enter lease information for comparison
- Set your annual mileage and ownership period
- View detailed loan vs lease comparison and total cost analysis
Loan Calculations
1. Loan Amount = Car Price - Down Payment - Trade-in Value
2. Monthly Payment = P × [r(1 + r)^n] / [(1 + r)^n - 1]
• Where P = Principal, r = Monthly Interest Rate, n = Total Payments
3. Total Interest = (Monthly Payment × Total Payments) - Loan Amount
4. Total Loan Cost = Monthly Payment × Total Payments + Down Payment
Lease Calculations
1. Total Lease Payments = Monthly Payment × Lease Term
2. Total Lease Cost = Total Payments + Down Payment + Excess Mileage
3. Excess Mileage = (Annual Mileage - Allowance) × Rate × Years
4. Residual Value = Car Price × (Residual Percentage ÷ 100)
5. Depreciation = Car Price - Residual Value
Ownership Costs
1. Insurance Cost = Annual Insurance × Ownership Period
2. Maintenance Cost = Annual Maintenance × Ownership Period
3. Fuel Cost = (Annual Mileage ÷ MPG) × Fuel Price × Years
4. Registration Cost = Annual Registration × Ownership Period
5. Total Ownership = Insurance + Maintenance + Fuel + Registration
Total Cost Comparison
1. Total Buy Cost = Loan Payments + Down Payment + Ownership - Final Value
2. Total Lease Cost = Lease Payments + Down Payment + Ownership + Excess Mileage
3. Cost Difference = Total Buy Cost - Total Lease Cost
4. Depreciation = Car Price × (1 - (1 - Annual Rate)^Years)
5. Final Value = Car Price - Total Depreciation
Important Notes:
- This comparison assumes you'll keep the car for the specified ownership period
- Lease maintenance costs are typically lower due to warranty coverage
- Consider your driving habits and mileage needs when choosing
- Factor in your financial situation and long-term vehicle plans
- Consult with a financial advisor for personalized advice
How Car Loan Calculator Works
This calculator helps you understand your complete car financing options and compare loan vs lease scenarios.
Loan Amount = Car Price - Down Payment - Trade-in Value
This is the principal amount you'll be borrowing from the lender.
Monthly Payment = P × [r(1 + r)^n] / [(1 + r)^n - 1]
Where P = Principal, r = Monthly Interest Rate, n = Total Payments
Total Interest = (Monthly Payment × Total Payments) - Loan Amount
Shows the total amount of interest you'll pay over the loan term.
Total Buy Cost = Loan Payments + Down Payment + Ownership - Final Value
Complete cost of buying including all payments and ownership costs.
Total Lease Cost = Lease Payments + Down Payment + Ownership + Excess Mileage
Complete cost of leasing including all payments and additional fees.
Depreciation = Car Price × (1 - (1 - Annual Rate)^Years)
Calculates how much the car's value decreases over time.
Cost Difference = Total Buy Cost - Total Lease Cost
Shows which option is cheaper over the ownership period.