Vehicle Loan Calculator
Car and vehicle loan calculator with down payment, trade-in, fees and flat-rate leasing. See the monthly installment, real interest rate and total cost.
Amortization schedule
| Year | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $5,839.56 | $4,066.52 | $1,773.04 | $19,933.48 |
| 2 | $5,839.56 | $4,404.03 | $1,435.53 | $15,529.45 |
| 3 | $5,839.56 | $4,769.57 | $1,069.99 | $10,759.88 |
| 4 | $5,839.56 | $5,165.44 | $674.12 | $5,594.44 |
| 5 | $5,839.84 | $5,594.44 | $245.40 | $0.00 |
About the Vehicle Loan Calculator
Find out what a car, van, motorbike or three-wheeler will really cost on finance. Add the vehicle price, your down payment and any trade-in, include fees, and compare reducing-balance loans with the flat-rate leasing many dealers and leasing companies quote.
How to use it
- Enter the vehicle price and your down payment (as an amount or a percentage).
- Add a trade-in value and any fees, and choose whether each fee is paid upfront or added to the loan.
- Pick the interest method: reducing balance (bank loans) or flat rate (most leasing).
- Compare the monthly installment, total interest and the equivalent real annual rate.
Flat rate vs reducing balance, with real numbers
Suppose a car costs 6,000,000 and you pay 30% down, leaving 4,200,000 to finance over 5 years. A bank loan at 12% on a reducing balance costs 93,426.68 a month and 1,405,600.82 in total interest.
A leasing company quoting 12% flat charges 12% of the full 4,200,000 for every one of the five years: 2,520,000 in interest, or 112,000 a month. That is the same monthly cost as a reducing-balance loan at about 20.3%. The orange note in the calculator shows this equivalent rate for any offer, so you can compare a lease and a bank loan like for like.
What to include
Enter the on-the-road price, then your down payment as an amount or a percentage, plus any trade-in value for your current vehicle. Registration, documentation, valuation and insurance charges can either be paid upfront or added to the loan; adding them means you pay interest on them for the whole term, so the calculator lets you test both.
The total cost of the vehicle adds everything together β down payment, trade-in, fees and every installment β so you can see what the vehicle really costs you over the agreement.
Ways to pay less
A bigger down payment cuts both the installment and the interest. A shorter term raises the installment but usually lowers the total cost. Always ask for the reducing-balance rate or the annual percentage rate (APR), and negotiate fees separately from the vehicle price.
Frequently asked questions
What is the difference between flat rate and reducing balance?
A flat rate charges interest on the original loan amount for the whole term, even after you have repaid part of it. A reducing-balance rate charges interest only on what you still owe. A 12% flat rate is therefore much more expensive than 12% reducing; this calculator shows the equivalent reducing rate so you can compare fairly.
Should I finance fees or pay them upfront?
Fees added to the loan accrue interest for the whole term, so paying them upfront is usually cheaper if you have the cash.
How much down payment should I make?
A larger down payment lowers both the installment and the total interest. Many lenders require 10β30% for vehicles, and some regulators set a maximum loan-to-value ratio.