Financing Calculator
Use the financing calculator to find the monthly payment for any financing in seconds. Enter the asset price, optional down payment, number of installments and monthly interest rate — we use the French (Price) amortization with fixed installments.
How to simulate a car or home loan
Enter the asset price, your down payment (subtracted from principal), the term in months and the monthly interest rate. The calculator returns the installment, total interest and total paid, instantly.
Fixed installments with the French (Price) system
The French system is standard for car loans, mortgages and consumer credit. Installments are fixed: early payments are mostly interest, late payments are mostly principal. It's the opposite of constant-amortization (SAC), where payments start high and decrease.
How to reduce financing interest
Three options: (1) larger down payment — reduces principal; (2) shorter term — less time accruing interest; (3) shop the rate across lenders. Simulate scenarios here before signing.
Car loan and mortgage simulator
This financing calculator works for any fixed-installment loan: car, motorcycle, home or consumer goods. Enter the asset price, optional down payment, term in months and monthly interest rate, and the simulator instantly returns the monthly payment, total interest and total cost — using the same Price/French amortization that banks apply.
For a $30,000 car financed over 60 months at 0.6%/month (~7.4% APR), the payment is roughly $598 and total interest tops $5,800. Adding a $5,000 down payment drops the payment to $499 and saves nearly $1,000 in interest over the term. It pays to simulate.
Fixed installments: how the French (Price) system works
Fixed-installment loans look simple from the borrower's side — same payment every month — but the split between interest and principal shifts each month. Early payments are mostly interest because the outstanding balance is high; late payments are mostly principal because most of the interest has already accrued. That's why the math behind it isn't intuitive without a calculator.
The alternative is constant-amortization (SAC), common in some mortgage markets: principal is fixed, interest decreases, payments start high and fall. SAC pays less total interest for the same rate and term but requires absorbing higher early payments.
Cutting your total interest cost
Three levers: bigger down payment (reduces principal directly), shorter term (less time accruing interest) and better rate (shop across lenders and credit unions). Refinance offers are worth simulating any time your credit improves or rates fall — recompute the new payment here before signing.
After origination, principal pre-payments are the most powerful tool. Always direct them to principal (not next month's payment) and ask whether your loan amortizes or recasts.
FAQ
How do I calculate a car loan payment?
Enter the vehicle price, down payment, term in months and monthly interest rate. The calculator applies fixed-installment amortization and returns your monthly payment, total interest and total cost — no sign-up required.
Does this include taxes and fees?
No. It uses the nominal interest rate you enter. For the true cost of credit, ask the lender for the APR (Annual Percentage Rate), which includes origination fees and mandatory insurance.
Is it better to take a longer or shorter term?
Shorter terms mean higher payments but much less total interest. Longer terms ease cash flow but pay much more interest overall. Simulate both with this calculator before deciding.