🚗 Car Loan Calculator
Enter the vehicle price, down payment, term and APR to see your monthly auto loan payment, total interest and full payoff schedule.
How to use the Auto Loan Calculator
Enter the vehicle price, down payment, trade-in value, term and rate to see the monthly payment and what you actually pay in interest.
How it works
An auto loan works like any amortizing installment loan: interest is charged on the outstanding balance each month while a fixed slice of principal is retired, so early payments are mostly interest and the balance drops slowly at first. A longer term lowers the monthly payment but you pay significantly more in total interest.
When to use it
Use it to set a realistic monthly car budget, to see what down payment actually saves, and to compare a dealer financing offer against a credit union or bank loan.
Worked example
A $32,000 car with $6,400 down over 60 months at 7.5 percent:
| Item | Amount |
|---|---|
| Loan amount | $25,600 |
| Monthly payment | $511.10 |
| Total interest | $5,066.13 |
| Total cost with interest | $30,666.13 |
Assumptions and limitations
This excludes sales tax, registration, documentation fees and insurance, which are substantial and vary by state. Negative equity from a trade-in is not handled. Rates depend on credit score and lender. Dealer markup on the rate can cost you thousands, so check your credit union first. This is not financial advice.
Frequently Asked Questions
How is a car loan payment calculated?
Your monthly payment is M = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the amount financed (price minus down payment), r is the monthly rate (APR ÷ 12) and n is the number of months. This calculator shows principal and interest only — sales tax, title, registration and dealer fees are not included.
How much should I put down on a car?
A common rule of thumb is 10–20% of the vehicle price (closer to 20% for a new car). A larger down payment lowers your monthly payment, cuts the total interest you pay, and reduces the risk of owing more than the car is worth early in the loan.
What APR can I expect on an auto loan?
It depends heavily on your credit score, the lender, and whether the car is new or used. Borrowers with strong credit often see single-digit APRs on new-car loans, while lower credit scores can mean rates well above 10%. Getting pre-approved by a bank or credit union gives you a baseline to compare against dealer financing.
Is a longer loan term a good idea?
72–84 month loans lower the monthly payment but usually cost far more in total interest — and you can end up "upside down" (owing more than the car is worth) for years. Pick the shortest term whose payment comfortably fits your budget.
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