Calculate your monthly payment and resale value over time
$
Enter a valid price (500-1,000,000)
$
Enter a valid down payment (0-1,000,000)
%
Enter a valid APR (0-30)
yr
Enter a valid term (1-8)
%/yr
Enter a valid rate (0-60)
yr
Enter valid years (1-10)
Monthly Payment
-- /mo
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--
Loan Amount
--
Total Interest
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Total Paid
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Resale Value
Depreciation Curve
Car Loan & Depreciation Calculator — Complete Guide
Buying a car involves two separate math problems that people often merge by mistake: what the loan costs each month, and what the vehicle is worth when you sell it. This calculator solves both at once so you can see the true financial picture of ownership.
What this calculator does
Enter the car price, down payment, annual percentage rate (APR), loan term, an annual depreciation rate and how many years you plan to keep the car. The calculator returns the monthly payment, total interest, total amount paid and the projected resale value, plus a year-by-year depreciation curve.
Two formulas: loan and depreciation
monthly = L × r × (1+r)^n ÷ ((1+r)^n − 1) L = price − down r = APR ÷ 12 n = term × 12 value after k years = price × (1 − depreciation)^k
The loan uses standard amortization, where interest is charged on the declining balance. Depreciation is modelled as a constant percentage lost each year, applied to the previous year's value.
A worked example
A $25,000 car with a $5,000 down payment leaves a $20,000 loan at 6.5% APR over five years. The monthly rate is 0.065 ÷ 12 = 0.005417 and n = 60, giving (1+r)^60 ≈ 1.3828 and a monthly payment of about $391. Over 60 payments the total is roughly $23,480, so interest is about $3,480. Applying 15% annual depreciation, after five years the car is worth 25,000 × 0.85^5 ≈ $11,090. You paid $28,480 in total (down payment plus instalments) for a car now worth about $11,090.
Year
Approx. value (15%/yr)
1
$21,250
3
$15,350
5
$11,090
Total cost of ownership and pitfalls
The gap between what you pay and what the car is worth is your depreciation cost — usually the largest expense of ownership, larger than interest.
A bigger down payment shrinks the loan and the interest, and can keep you from being "underwater" early in the term.
Shorter terms raise the monthly payment but cut total interest; longer terms do the opposite.
Luxury and fast-changing models often depreciate faster than the default rate; adjust it to match the segment.
Insurance, fuel, maintenance and taxes are not included here and should be budgeted separately.
Checking the depreciation curve before you sign helps you judge whether a shorter loan or a larger deposit leaves you with equity instead of a debt that outlasts the car's value.
It is calculated from the loan amount, annual percentage rate (APR) and term length, with interest accruing on the outstanding balance each month.
Why do cars lose value so quickly?
Most cars lose about 20% of their value in the first year and roughly 15% per year afterwards. The depreciation view shows the projected value over time.
Should I choose a shorter or longer loan term?
Shorter terms have higher monthly payments but lower total interest. Longer terms reduce monthly costs but cost more overall.