Calculate your monthly car payment, total interest, and complete loan breakdown with our free Auto Loan Calculator. Whether you're buying new or used, see exactly how much you'll pay over the life of your loan and compare different loan terms to find the best deal for your budget. Understanding your auto loan before you visit the dealership puts you in control. Our calculator shows your monthly payment, total interest cost, and how different down payments or loan terms affect your overall cost. Make informed decisions and negotiate confidently knowing exactly what you can afford.
Saved Presets is a Supporter feature.
Tool History is a Supporter feature.
Tool Notes is a Supporter feature.
Input the sticker price or negotiated price of the new or used vehicle.
Enter your down payment amount and any trade-in vehicle value to reduce the loan amount.
Enter the APR quoted by your lender and choose a loan term (24, 36, 48, 60, 72, or 84 months).
Adjust the term length to see how shorter vs longer loans affect monthly payment and total interest.
Auto loans use the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n – 1] where P is principal (loan amount), r is monthly interest rate, and n is number of payments. For a $25,000 car at 6.5% APR for 60 months, your monthly payment would be approximately $489. The loan amount equals vehicle price minus down payment plus any fees, taxes, or negative equity from a trade-in. Most lenders require comprehensive insurance, which adds to your total cost of ownership.
Longer loan terms mean lower monthly payments but significantly more interest paid: - 36 months: Higher payment, lowest total cost - 48 months: Balanced option - 60 months: Most common term - 72 months: Lower payment, higher total interest - 84 months: Lowest payment, highest cost (often underwater on loan) A $30,000 loan at 7% APR costs $3,300 in interest over 36 months versus $6,700 over 72 months – more than double.
A larger down payment reduces both your monthly payment and total interest. Putting 20% down on a $30,000 car means financing only $24,000. This also helps you avoid being "upside down" (owing more than the car's worth) and may qualify you for better interest rates.
Maria found a used car for $18,000 and qualifies for 8.5% APR with $2,000 down for 48 months. - Input: $16,000 loan amount, 8.5% APR, 48-month term - Convert to: Monthly payment and total cost - Result: $395/month, $18,960 total paid ($2,960 in interest) The higher rate on used cars still makes sense when the total cost is reasonable relative to income.
David has excellent credit and qualifies for 4.9% APR on a $28,000 loan. He's comparing 48 vs 60 vs 72 month terms. - Input: $28,000 loan, 4.9% APR, compare terms - Convert to: Monthly payments and total interest for each term - Result: 48mo: $644/mo ($2,912 interest) | 60mo: $527/mo ($3,620 interest) | 72mo: $449/mo ($4,328 interest) The 48-month term saves $1,416 in interest compared to 72 months, though payments are $195 higher monthly.
Interest rates depend on credit score, loan term, and whether the car is new or used. As of 2024, excellent credit (750+) typically gets 4-6% on new cars and 5-8% on used. Good credit (700-749) sees 6-9% new and 8-11% used. Fair credit (650-699) ranges 9-13% for new and 11-16% for used. Rates below 3% are promotional rates from manufacturers on specific models.
