Auto Loan Calculator

Calculate monthly car payments and total cost.

Vehicle Price ($)

Down Payment ($)

Trade-in Value ($)

Annual Interest Rate %

Loan Term (Months)

Results

Monthly Payment

Loan Amount $0

Total Interest $0

Total Amount $0

How to Use This Auto Loan Calculator

Our free auto loan calculator helps you estimate your monthly car payments. Enter the vehicle price, down payment, trade-in value, interest rate, and loan term to get accurate results.

Understanding your auto loan helps you budget for your new vehicle and compare different financing options.

Frequently Asked Questions

How is auto loan monthly payment calculated?

Auto loan monthly payment is calculated using the loan amount (vehicle price minus down payment), annual interest rate, and loan term in months.

What affects my auto loan interest rate?

Your auto loan rate is influenced by your credit score, down payment amount, loan term, vehicle age, and whether you have a co-signer.

Should I choose a longer or shorter loan term?

A shorter loan term means higher monthly payments but less total interest. A longer term has lower payments but more interest paid over time.

An auto loan is the most common installment debt behind a mortgage, and the monthly payment is the number that decides which car actually fits the budget. The calculator below uses the same amortization formula as a mortgage: enter the loan amount, the APR, and the term in months, and the result is the fixed monthly payment, the total interest over the loan, and the full cost of the car including interest.

Auto loan terms are short compared to mortgages, most often 36, 48, 60, or 72 months, and the rates are usually lower than for credit cards or personal loans. A 60-month loan at 7 percent on $30,000 carries a monthly payment near $594, with about $5,640 in interest. Stretching the same loan to 72 months drops the payment to about $509 but pushes total interest to roughly $6,650, an extra thousand dollars for an extra year of payments. That is the basic tradeoff: longer term means lower monthly bills, higher total cost.

New versus used matters for both price and rate. A new car loses 20 to 30 percent of its value in the first year, so financing a used car usually means a smaller loan and a slower depreciation curve. Rates on used cars are often 1 to 3 percentage points higher than on new ones, which partially offsets that advantage. Lease versus buy is the other big decision. A lease is essentially a long-term rental with a mileage cap, no equity built up, and a return of the car at the end. Buying keeps the asset and lets the owner drive it as long as it runs.

The calculator is also handy for stress-testing extras: rolling sales tax into the loan, adding a trade-in, or simulating a balloon payment at the end. It is worth running the numbers before visiting the dealer, since the same monthly payment can hide very different total costs depending on the term.

How to use

Enter the vehicle price, the down payment or trade-in value, and any fees or sales tax to find the actual loan amount.
Enter the APR (annual percentage rate) as a percentage and the loan term in months. Common terms are 36, 48, 60, and 72.
Click calculate to see the monthly payment, total interest paid, and total cost of the vehicle over the life of the loan.
Re-run with different terms, a bigger down payment, or precomputed dealer rebates to compare the total cost of each option.

Formula

M = P × [r × (1 + r)^n] ÷ [(1 + r)^n − 1], where P is the loan principal, r is the monthly rate (APR ÷ 12), and n is the number of monthly payments. Example: a $25,000 loan at 6.5% APR over 60 months has r = 0.00542 and n = 60, giving a monthly payment of about $489.

Interpreting your results

The monthly payment is the headline figure for budget fit. Total interest is the cost of borrowing on top of the car price, and total cost is what the vehicle actually runs over the term. As a rule, financing a car for longer than five years means paying significant interest on a depreciating asset, which is a weak deal on paper but sometimes the only way to keep the monthly payment manageable.

Frequently asked questions

How long should an auto loan be?

Shorter is almost always cheaper. 36 to 60 months is the standard range; 72 months is common but expensive in total interest, and 84 months is rarely a good idea on a depreciating asset. Pick the shortest term whose monthly payment still fits the budget.

Is it better to lease or buy?

Leasing usually means a lower monthly payment and a new car every few years, but no ownership at the end and strict mileage limits. Buying costs more per month but builds equity, has no mileage cap, and removes the lease-end inspection. Drivers who keep cars a long time come out ahead buying; drivers who want a fresh car every three years and stay under 12,000 miles a year often prefer leasing.

Does my credit score affect the rate?

Yes, often significantly. A buyer with a 760+ score might get a 6 percent rate on a new car, while a buyer in the 580-620 range may see 12 percent or higher on the same vehicle. The difference over five years can be $3,000 to $4,000 on a typical loan, which is why checking the score before car shopping pays off.

Should I finance through the dealer or a bank?

Dealer financing is convenient and often offers promotional rates, but it can include rate markup that goes to the dealer, not the lender. Get pre-approved from a bank or credit union first, then negotiate the car price separately. The pre-approval becomes a strong fallback if the dealer cannot beat it.