Auto Loan Calculator
Calculate your monthly car payment and total loan cost.
Results update as you type.
This calculator is for illustrative purposes only. Actual rates, fees and terms vary by lender. Consult a qualified financial adviser before making borrowing decisions.
How it works
An auto loan calculator applies the standard installment loan formula to determine exactly what you will owe each month for a car purchase financed over time. The lender advances the vehicle price minus your down payment and trade-in, then charges interest on the outstanding balance each month. Because the rate is applied to a shrinking balance, your fixed payment front-loads interest and gradually shifts toward principal as the loan matures. Knowing your monthly payment before you sign matters because dealers often quote attractive monthly figures by extending the term, which quietly raises total interest paid. A 72-month or 84-month loan may carry a lower payment than a 48-month loan at the same rate, but can add thousands in interest and leave you owing more than the car is worth — a situation called being underwater or upside-down. This auto loan calculator separates the amount financed from the total you will pay, helping you compare a lower rate from your bank against dealer financing, evaluate how much trade-in value actually saves, and decide whether a larger down payment justifies the upfront cash. Always compare offers using the APR rather than the stated rate, since APR folds in lender fees.
M = P × r(1+r)^n / ((1+r)^n − 1), where r = APR/12 and n = months
P is the amount financed after down payment and trade-in, r the monthly rate (APR ÷ 12) and n the number of payments. Raising (1+r) to the power of n computes how much each dollar of principal grows over the full term. Multiplying by r and dividing by that factor minus one spreads the loan perfectly so the balance reaches zero on the final payment while charging interest on the declining balance every month.
Source:Consumer Financial Protection Bureau (CFPB)
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter vehicle price, interest rate (apr) and loan term (months).
- 2
Adjust the options
Adjust down payment and trade-in value if they apply — sensible defaults are already set.
- 3
Read your result
Monthly payment updates instantly as you type — no button to press.
Frequently asked questions
What credit score do I need for a good auto loan rate?
Lenders typically tier rates by credit score. Scores above 720 usually qualify for the best advertised rates, scores in the 660–720 range pay a modest premium, and scores below 600 can face rates two to three times higher than prime borrowers. Before shopping, check your credit report for errors and consider paying down revolving debt to boost your score, since even a one-point rate improvement on a 60-month loan saves a meaningful amount in total interest.
Should I finance through the dealership or my bank?
Both deserve a look. Dealers sometimes offer promotional rates — including 0% — on select models, which can be unbeatable. However, dealer financing often carries a markup on the rate the bank originally quoted. Getting a pre-approval from your bank or credit union before visiting the dealer gives you a firm benchmark, positions you to negotiate the vehicle price and financing separately, and prevents the dealer from bundling a higher rate into an otherwise attractive payment.
What is a good loan term for a car?
A 48- or 60-month term balances manageable payments with reasonable total interest. Longer terms — 72 or 84 months — lower the monthly payment but cost significantly more in interest and increase the risk you will owe more than the car is worth as it depreciates. Since most vehicles lose 15–20% of value in the first year, a long-term borrower can find themselves upside-down for years, making it hard to sell, trade, or refinance without bringing cash to the table.
Does a bigger down payment always make sense?
Financially, yes — a larger down payment reduces the amount financed, lowering both the monthly payment and total interest. It also protects against being upside-down as the vehicle depreciates. However, draining your emergency fund for a down payment can leave you financially exposed if unexpected expenses arise. A practical approach is to put at least 10–20% down and keep three to six months of expenses in reserve.
How does my trade-in affect the loan?
A trade-in reduces the purchase price and therefore the amount financed, saving you interest over the life of the loan. Dealers are required to disclose the trade-in value separately from the transaction price. Get an independent appraisal — from CarMax, Carvana, or KBB Instant Cash Offer — before negotiating so you know the market value and can push back if the dealer undervalues it. If you owe money on your trade-in, the negative equity rolls into the new loan, increasing what you finance.