Auto Loan Calculator
Enter the car price, down payment, interest rate, term and an optional balloon payment to get the loan amount, monthly payment, interest cost and total cost.
Loan Amount
€25,000.00
Monthly Payment
€574.60
Total Cost
€32,580.83
Interest Cost
€2,580.83
Note: These calculations are for informational purposes only and do not replace professional tax or financial advice. All information without guarantee.
FAQ
Frequently Asked Questions
Is a car loan or dealer financing better?
Compare the effective interest rates carefully. Dealer financing often includes hidden costs or requires waiving cash discounts. A bank car loan may offer better terms and more flexibility.
What term should I choose for a car loan?
The loan term should not exceed the planned period of vehicle ownership. Typical terms are 36-60 months. Shorter terms mean higher payments but less total interest.
Why does a final payment cost more interest?
Because the amount of the final payment stays borrowed until the end of the term and bears interest the whole time. Example: €18,000 loan, 4.9 %, 48 months – without a final payment €413.71 per month and €1,858.20 interest, with an €8,000 final payment €262.51 per month but €2,600.33 interest. The final payment is due in one sum at the end.
Are my entered amounts stored anywhere?
No. All calculations happen exclusively in your browser. Your inputs are never sent to our server or stored. You can safely enter sensitive financial data.
Guide
What is the Auto Loan Calculator?
The car loan calculator works out the monthly payment, interest cost and total cost of car financing – as a classic instalment loan or as balloon financing with a final payment.
How does the Auto Loan Calculator work?
Enter the vehicle price, down payment, borrowing rate, term in months and, optionally, a final payment. The loan amount is the vehicle price minus the down payment. Without a final payment it is fully repaid in equal monthly instalments. With a final payment (balloon financing) the instalments only repay the part above the final payment – but interest is charged on the whole loan amount until the end of the term: payment = (loan − final payment / (1 + i)^n) × i / (1 − (1 + i)^−n), where i = borrowing rate / 12. The calculator shows the loan amount, monthly payment, interest cost, all payments to the bank and the total cost including the down payment.
Key Data and Facts
Interest cost = sum of the monthly payments + final payment − loan amount. A final payment lowers the monthly payment but raises the interest cost, because the remaining amount bears interest until the end and is due in one sum (follow-up loan, or handing the car back in three-way financing). Typical terms: 24–84 months. Transferring the vehicle as collateral (the bank keeps the registration certificate) is common. Not included: processing fees or payment protection insurance; compare offers by the effective annual rate.
Step-by-Step Guide
How to calculate your car financing step by step: 1. Set the vehicle price: new or used, including equipment and delivery. 2. Decide on the down payment: 10–20 % of the price is recommended; a higher down payment lowers the loan amount, payment and interest. 3. Choose the type of financing: instalment loan (final payment 0) or balloon financing with a final payment. 4. Enter the borrowing rate and term: the fixed borrowing rate from the offer, not the effective annual rate. 5. Read the result: monthly payment, interest cost and the sum of all payments to the bank; with a final payment it is shown separately. 6. Plan the final payment: it is due in one sum at the end – from savings, with a follow-up loan or by returning the car if the dealer offers that. 7. Compare offers: judge dealer financing and bank loans by the effective annual rate and the total cost, not by the monthly payment.
Calculation Example
Used car €22,000, down payment €4,000: loan amount €18,000, 48 months, borrowing rate 4.9 % (i = 0.4083 %). Without a final payment: payment = 18,000 × 0.004083 / (1 − 1.004083^−48) = €413.71 (unrounded 413.7124), sum of payments €19,858.20, interest €1,858.20. With an €8,000 final payment: 1.004083^48 = 1.21604, 8,000 / 1.21604 = 6,578.72; payment = (18,000 − 6,578.72) × 0.022984 = €262.51 (unrounded 262.5069), sum of payments €12,600.33; interest = 12,600.33 + 8,000 − 18,000 = €2,600.33. The payment falls by €151.20, the interest cost rises by €742.13.
Sources
Official sources
Calculations are based on applicable German laws and official data:
- Deutsche Bundesbank
- Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)
- Statistisches Bundesamt (Destatis)
Full methodology at Methodology.
Reviewed by Konstantin Iakovlev · Last updated:
Finance
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