Auto Loan Calculator
Calculate your monthly car payment, total interest, and total cost for any auto loan.
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How to use this calculator
M = monthly payment, P = loan amount, r = monthly interest rate, n = number of months.
- 1
Enter the vehicle purchase price.
- 2
Enter your down payment and any trade-in vehicle value.
- 3
Enter the annual interest rate from your lender.
- 4
Enter the loan term in months (36, 48, 60, or 72 are most common).
- 5
See your monthly payment and total financing cost.
Frequently asked questions
What is a good interest rate for a car loan?
Rates vary by credit score. Excellent credit (720+): 5–6%. Good credit (680–719): 6–8%. Fair credit (620–679): 9–14%. Poor credit (<620): 15–25%+. Dealer financing is often higher than bank or credit union rates — always compare.
Should I choose a longer loan term for lower payments?
A longer term (72 or 84 months) lowers monthly payments but significantly increases total interest paid. It also risks being "underwater" — owing more than the car is worth — as vehicles depreciate quickly in the first 3 years.
How does a trade-in affect my loan?
Trade-in value directly reduces the loan principal, saving interest. However, dealers often undervalue trade-ins. Get an independent appraisal from CarMax, Carvana, or KBB Instant Cash Offer before negotiating.
Is it better to finance through a dealer or my bank?
Banks and credit unions typically offer better rates than dealer financing. Get pre-approved before visiting the dealership — it gives you negotiating leverage. Dealer "0% financing" promotions are usually only available on select slow-selling models.
Auto loan payments and financing explained
How auto loan interest is calculated
Auto loans are simple interest loans — interest accrues daily on the outstanding principal. Unlike mortgages, if you pay early, interest stops accumulating sooner. Extra payments go directly to principal, accelerating payoff.
New vs used car financing
New cars typically qualify for lower interest rates (including manufacturer promotions) but depreciate 15–25% in the first year. Used cars have higher loan rates (1–3% more) but lower purchase prices. A 2–3 year old certified pre-owned vehicle often offers the best value.
The true cost of a car beyond the loan
Monthly loan payments are only part of the cost. Add insurance (average $1,500–$2,500/year), fuel (~$1,500–3,000/year), maintenance and repairs (~$500–1,500/year), registration, and depreciation. The full annual cost of car ownership often exceeds the loan payment.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →