Auto Loan Calculator
Estimate your monthly car payment from the vehicle price, your down payment and trade-in, the APR and the number of months. Compare terms before you visit the dealer.
Results
Monthly payment
$594.04
Registration, insurance and any add-ons are excluded unless you included them in the vehicle price.
- Amount borrowed
- $30,000.00
- Total interest
- $5,642.16
- Total of payments
- $35,642.16
- Paid off in
- 5 years
- Down payment
- 14.3% of price
Principal 84%Interest 16%
How this was calculated
Monthly rate r = 7% ÷ 12 = 0.005833. Number of payments n = 60.
Payment = P × r(1 + r)n ÷ ((1 + r)n − 1), where P = $30,000.00. Each month, interest is charged on the remaining balance and the rest of the payment reduces the balance.
Lenders round to the cent and some accrue interest daily, so your statement may differ slightly.
Amortization schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | $5,192.94 | $1,935.49 | $24,807.06 |
| 2 | $5,568.34 | $1,560.09 | $19,238.72 |
| 3 | $5,970.87 | $1,157.56 | $13,267.85 |
| 4 | $6,402.51 | $725.92 | $6,865.34 |
| 5 | $6,865.34 | $263.09 | $0.00 |
The starting values are examples only, not current rates. Replace them with your own figures.
What to enter as the vehicle price
Use the amount you will actually finance before your down payment. That usually means the negotiated price plus any sales tax, title, registration and dealer fees you are rolling into the loan, plus any add-ons such as service contracts or GAP coverage that you agree to finance.
If you are trading in a car that still has a loan on it, subtract what you still owe from its trade-in value before entering it in the down payment field. If you owe more than the car is worth (negative equity), add the difference to the vehicle price instead, because it will be added to your new loan.
Why the loan term matters so much
Car loans are usually quoted in months, often from 36 to 84. Stretching the term lowers the monthly payment, which can make a more expensive car look affordable. But you pay interest for longer, and longer terms often come with higher rates.
Cars lose value quickly. On a long loan with a small down payment, you can owe more than the car is worth for much of the loan. That matters if the car is totaled or you want to sell or trade it early.
Shopping for financing before you shop for the car
Dealers can arrange financing through partner lenders, and the rate you are offered may include a dealer markup. Getting a preapproval from a bank or credit union first gives you a rate to compare against. Run both offers through this calculator using the same price and term to compare them fairly.
Focus on the total price and the APR, not only the monthly payment. A lower monthly payment that comes from a longer term or a higher price is not a better deal.
- Compare offers by APR and total of payments, not only the monthly figure.
- Ask for the price of each add-on separately, and know that most are optional.
- Check whether there is a prepayment penalty if you plan to pay the loan off early.
Comparing 48, 60 and 72 months
The same $30,000 loan (a $35,000 car with $5,000 down) at the same example rate over three common terms. In practice, lenders often charge higher rates on longer terms, so the real gap is usually larger.
| Scenario | Borrowed | Rate | Term | Monthly payment | Total interest |
|---|---|---|---|---|---|
| 48 months | $30,000 | 7% | 4 years | $718.39 | $4,483 |
| 60 months | $30,000 | 7% | 5 years | $594.04 | $5,642 |
| 72 months | $30,000 | 7% | 6 years | $511.47 | $6,826 |
Going from 48 to 72 months cuts the monthly payment noticeably but increases the total interest by roughly half — on a car that keeps losing value the whole time.
How the calculation works
The auto calculator uses the same fixed-rate amortization formula as our main loan calculator. Interest is charged monthly on the remaining balance, and equal payments pay off the loan by the end of the term. For a step-by-step walkthrough, read how loan amortization works.
Auto loan questions
Should I enter the APR or the interest rate?
Enter the APR from your auto loan offer if that’s all you have. For most car loans with few upfront finance charges, the APR and the note rate are close, and the APR gives a more complete picture of the cost.
Does the calculator include sales tax?
Only if you include it. Sales tax rules differ by state and some states tax only the difference after a trade-in, so add the tax you will finance to the vehicle price.
What does a 0% APR offer cost?
Enter 0 as the rate and the payment is simply the amount borrowed divided by the months. Manufacturers sometimes offer either 0% financing or a cash rebate. Compare both by running the rebate scenario at the rate you could get elsewhere.
Is it better to lease or buy?
This calculator covers buying with a loan. Leases are priced differently, using residual value and a money factor, so lease payments cannot be compared directly with these results.
Sources and further reading
- Auto loans: tools and answers — Consumer Financial Protection Bureau
- Regulation Z (Truth in Lending), 12 CFR Part 1026 — Consumer Financial Protection Bureau
Related calculators
Have a different kind of loan? Use the general loan payment calculator.