Question 1

How is a car loan payment calculated?

Accepted Answer

Monthly payment = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the principal (after down payment and trade-in), r is the monthly interest rate (APR / 12), and n is the number of months. The formula amortizes the loan equally over the term.

Question 2

What is a good interest rate for a car loan?

Accepted Answer

As of 2026, average new-car loan rates are 6-8% APR for prime borrowers and 9-14% for used cars. Credit unions typically offer 0.5-1% lower rates than dealerships. Your actual rate depends heavily on credit score, loan term, and whether the loan is for new or used.

Question 3

Should I choose a short or long loan term?

Accepted Answer

Shorter terms (36-48 months) have higher monthly payments but much lower total interest and faster equity build-up. Longer terms (72-84 months) have lower monthly payments but you pay significantly more interest and risk being upside-down on the loan. Aim for a term no longer than 60 months for the best financial outcome.

Question 4

Is my financial data stored?

Accepted Answer

No. All calculations happen in your browser. No data is ever sent to any server.