See the real cost of a car loan before the dealer shows you “just the monthly payment”. Works in any currency. The two numbers that matter are at the bottom: total interest, and whether the structure passes the healthy-loan test.
🧮 Car Loan Calculator
Standard amortised-loan formula. Balloon/PCP deals differ – the “guaranteed future value” is a separate obligation the monthly payment hides.
The three rules of a healthy car loan
1. Total interest under ~10% of the car’s price. Above that, the financing quietly becomes a second purchase. 2. Term no longer than you’ll keep the car – long loans on depreciating cars create negative equity, the trap that ruins trade-ins. 3. Payment under ~10–15% of monthly take-home including insurance and fuel, or the car owns you.
Dealer financing tricks to watch
The “what monthly payment are you looking for?” question (stretching the term hides the true cost – negotiate the price first), 0% offers that quietly remove the cash discount, add-on products rolled into the loan at 3× market price, and rate markups – your bank’s pre-approval is your leverage.
FAQ
Is 0% finance really free money?
Compare the 0% price against the best cash price – the discount you give up is the real interest. If the cash price is identical, 0% genuinely wins.
Should I finance a used car?
Rates run higher on used cars, but financing 3–4-year-old cars is often still the cost sweet spot – see our leasing vs buying breakdown.
Fixed or variable rate?
For a depreciating asset on a family budget, fixed is usually the sane choice – car loans are short enough that betting on rate cuts rarely pays.
