Monthly payment and total cost of a car loan after your down payment.
Monthly payment
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Amount financed
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Total interest
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Total cost
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Your breakdown
Updates live as you type
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Amount (NGN)
Worked example
Take a vehicle priced at N15,000,000 with an N3,000,000 down payment, financed at 26% a year over 36 months. The down payment comes off the price first, so the amount financed is N12,000,000. The monthly rate is 26% divided by 12, and the standard amortising formula spreads the N12,000,000 over 36 equal payments of about N483,487. Over the full term you pay about N17,405,548 to the lender, so the interest is about N5,405,548. Adding the down payment back, the total outlay on the car is about N20,405,548. A larger down payment would lower both the monthly payment and the total interest, because you borrow less to begin with.
How it is calculated
The calculator first subtracts your down payment from the vehicle price to get the amount actually financed. It then applies the standard amortising loan formula, where the monthly payment equals the principal times the monthly rate, divided by one minus the quantity one plus the monthly rate raised to the negative number of months. The monthly rate is the annual rate divided by twelve. Multiplying that payment by the number of months gives the total paid to the lender, and the interest is that total less the financed amount. The total cost adds your down payment back, so it reflects the full outlay on the vehicle rather than just the loan. Because Nigerian car loan rates are high, the term matters a great deal: a longer term lowers the monthly payment but raises the total interest sharply, so the shortest term you can comfortably afford is usually the cheapest overall.
Frequently asked questions
How does a down payment affect my car loan?
The down payment is paid upfront and reduces the amount you borrow, so your monthly payment and total interest both fall. This calculator subtracts the down payment from the vehicle price to get the financed amount, then spreads it over your chosen term at the quoted rate. The total cost shown adds the down payment back so you see the full outlay on the vehicle.
What interest rates do Nigerian banks charge on car loans?
Most Nigerian commercial banks set car loan rates between 22% and 30% per year, depending on whether the vehicle is brand new or fairly used and whether you have a salary account with the lender. Rates tied to the Central Bank of Nigeria policy rate tend to move upward during high-inflation periods, so it pays to compare offers from at least three lenders before committing. Some manufacturers offer slightly lower promotional rates through their dealer financing arms.
Can I get a car loan for a fairly used or Tokunbo vehicle in Nigeria?
Yes, most banks and finance companies in Nigeria lend on fairly used vehicles, though the terms differ from new-car loans. Lenders typically require that the vehicle is not older than five to seven years at the end of the loan term, and they may apply a higher interest rate or a shorter maximum term compared with new cars. You will usually need a valuation report from an approved assessor, and the bank will insist on comprehensive insurance for the duration of the loan.
How does the loan term affect the total cost of my car loan in Nigeria?
A longer term lowers your monthly payment but significantly raises the total interest you pay over the life of the loan. Because Nigerian car loan rates are high, even a six-month extension can add hundreds of thousands of naira to your total outlay. As a rule of thumb, keep the term as short as your monthly budget allows. Use the calculator above to compare two or three term options side by side before signing any agreement.