Auto Loan Calculator
Find out your exact monthly car payment and the true total cost of your vehicle. Enter the vehicle price, down payment, trade-in value, interest rate, and loan term to instantly calculate how much you will pay each month and in total interest.
This calculator provides estimates for general informational purposes only and does not constitute financial advice. Consult a qualified financial professional before making any financial decisions.
How It Works
An auto loan works like any installment loan. The amount financed is the vehicle price minus down payment minus trade-in value. Interest is then calculated on that financed amount.
Amount financed = Vehicle price − Down payment − Trade-in value
Monthly payment = A × r(1+r)^n / ((1+r)^n − 1)
Where A is the amount financed, r is the monthly rate (APR ÷ 12 ÷ 100), and n is the loan term in months.
Worked example: $35,000 car, $3,000 down, $5,000 trade-in, 6.9% APR, 60 months.
Amount financed = $35,000 − $3,000 − $5,000 = $27,000
r = 6.9/12/100 = 0.00575
Monthly payment = 27,000 × 0.00575 × (1.00575)^60 / ((1.00575)^60 − 1) ≈ $531.33
Total paid = $531.33 × 60 = $31,879.80
Total interest = $31,879.80 − $27,000 = $4,879.80
Note: Sales tax, registration fees, and dealer add-ons are not included here but increase the effective loan amount if rolled in.
Frequently Asked Questions
What is a good interest rate for a car loan?
Rates depend on credit score and loan term. As of recent averages: excellent credit (750+) may qualify for 4–6% APR; good credit (680–749) typically sees 6–9%; fair credit (620–679) often 10–15%. New cars usually carry lower rates than used vehicles.
Should I put more money down on a car?
A larger down payment reduces the amount financed, lowers monthly payments, and reduces total interest. It also helps avoid being "upside down" (owing more than the car is worth), which happens quickly with auto depreciation.
Does a longer loan term save money?
A longer term lowers the monthly payment but increases total interest paid significantly. A 72-month loan on a $25,000 car at 7% costs about $5,600 in interest; a 36-month loan costs about $2,700. Longer terms also risk negative equity as the car depreciates.
How does trade-in value affect the loan?
Trade-in value is applied directly to reduce the purchase price, lowering the amount you need to finance. This saves interest and lowers your monthly payment. It is equivalent to a larger down payment.
Are taxes and fees included?
This calculator does not include sales tax, registration, title fees, or dealer fees. These can add 8–12% to the vehicle cost. If you roll them into the loan, enter the full financed amount in the vehicle price field (with $0 down and $0 trade-in).