Introduction
The car loan calculator is a free online tool designed for car buyers, supporting two mainstream repayment methods: equal installment payment and equal principal payment. Simply enter the car price, down payment ratio, loan term, and annual interest rate to get key data such as down payment amount, monthly payment, total interest, etc. with one click, helping you easily compare car purchase plans and plan your finances wisely.
Calculation Methods
- Equal Installment Payment: Monthly payment is fixed, interest decreases monthly, principal increases monthly.
Monthly Payment = Principal × Monthly Interest Rate × (1 + Monthly Interest Rate)^Periods ÷ [(1 + Monthly Interest Rate)^Periods − 1]
- Equal Principal Payment: Fixed principal repayment each month, interest decreases monthly, monthly payment decreases monthly.
Monthly Payment = Principal ÷ Periods + (Principal - Repaid Principal) × Monthly Interest Rate
How to Use
- Enter the total car price (in CNY)
- Enter the down payment ratio (e.g., 30 means 30%)
- Select the loan term (1 to 5 years available)
- Enter the annual loan interest rate (e.g., 4.75 means 4.75%)
- Select repayment method: equal installment payment or equal principal payment
- Click 'Calculate' to view detailed results
Calculation Formula (Using Equal Installment Payment as Example)
- Loan Principal P = Car Price × (1 − Down Payment Ratio)
- Monthly Interest Rate i = Annual Interest Rate ÷ 12
- Number of Payment Periods n = Loan Term × 12
- Monthly Payment A = P × i × (1+i)^n ÷ [(1+i)^n − 1]
- Total Interest = A × n − P
Important Notes
- Calculation results are for reference only. Actual costs may include insurance, service fees, purchase tax, etc. Please refer to the contract with your bank/financial institution.
- Car loan interest rates may vary due to factors such as personal credit, car model, promotions, etc. It is recommended to consult multiple institutions before making a decision.
- Early repayment may incur a penalty. Please review the contract terms before calculating.