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 to use the auto loan
Use this auto loan to your monthly car payment, total interest, and total cost for any auto loan. Enter your values above and get your result in seconds. The tool is free, works on all devices, and keeps your data private — nothing is stored or shared.
How the auto loan works
The auto loan calculator uses standard formulas used in financial planning, budgeting, and investment decisions. Enter your inputs, and the tool calculates the result instantly in your browser. No server-side processing means your data stays on your device. Results update in real time as you change inputs.
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.
Auto loan: how it works
This free tool helps you plan and compare financial scenarios in seconds. Enter your figures, adjust the assumptions, and instantly see how different inputs affect the outcome — ideal for budgeting, benchmarking, and data-driven decision-making.
Who uses this tool?
Financial planners, accountants, students, and individuals use it to model scenarios before committing to major financial decisions. It is equally useful for quick sanity checks and detailed what-if analyses.
Learn more from an authoritative source:
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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 →