A zero-interest car loan

A note rate of zero makes every dollar of the payment principal. Check the APR anyway. The fee may not be zero.

The payment is the loan divided by the months

With a zero note rate, there is no interest in the schedule. The payment is the amount financed divided by the term. The yearly table’s interest column stays empty, and cumulative interest stays zero.

The amount financed still includes sales tax and still subtracts down payment and trade-in. Zero interest is not a zero price.

The APR can still imply a fee

If the disclosed APR is above zero, the calculator estimates a prepaid finance charge even though the payment has no interest. That fee is part of the hold-period cost when you compare offers.

Sometimes the cost of zero percent is a higher vehicle price or a lost rebate. Put the price you would actually pay in the price field. The calculator will not add a rebate you did not type.

Compare it with a rebate offer

Run the zero-percent price and rate, and note the cost. Then type the rebated price and the financed rate. Compare those two loan costs, and keep insurance and fuel the same.

The cheaper financing is the lower fee-plus-interest over the hold, on the price you typed for each run. Write the first total down before you replace it.

This explains how WiseCalculator treats the numbers you type. It is not a lender’s offer and it is not advice for your loan.