Auto Loan Calculator
Calculate your monthly car payment, total interest, and full amortization schedule
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How to Use This Auto Loan Calculator
Enter your vehicle price, down payment, interest rate, and loan term to instantly see your monthly payment and total cost. Add your trade-in value (and any amount still owed on it), plus sales tax and registration fees, for a complete picture of what you'll actually pay.
The Include taxes & fees in loan checkbox shows the difference between paying these upfront vs. rolling them into the loan — which adds to your total interest cost. Use the Extra Monthly Payment field to see how much sooner you could pay off the loan and how much interest you'd save.
Understanding Your Car Loan
Your loan amount is the vehicle price minus your down payment and any net trade-in equity, plus taxes and fees if financed. This is the figure interest is charged on. A shorter loan term means higher monthly payments but significantly less total interest. A 36-month loan at 7% on a $28,000 balance costs about $2,100 in interest — the same loan stretched to 72 months costs nearly $4,300.
Key considerations when financing a car:
- LTV and depreciation — most cars lose 15–20% of their value in the first year. Long loan terms can leave you "underwater" (owing more than the car is worth) for years.
- GAP insurance — covers the difference between what you owe and what the car is worth if it's totaled or stolen. Worth considering on long-term or low-down-payment loans.
- Dealer financing vs. pre-approval — getting pre-approved by your bank or credit union before shopping gives you negotiating leverage and often a better rate.
Frequently Asked Questions
- What is a good interest rate for a car loan?For buyers with good credit (700+), new car loan rates typically range 5–8%. Used car rates run 1–3% higher. Below 5% is excellent; above 10% is expensive — shop around or consider a larger down payment to reduce the loan amount.
- Should I put more money down on a car?A larger down payment lowers your loan balance, reduces monthly payments, decreases total interest, and helps you avoid being underwater on the loan. Aim for 10–20% down on a new car, or 10% on a used car, as a baseline.
- How does negative equity in a trade-in affect my loan?If you owe more on your trade-in than it's worth, the difference (negative equity) gets rolled into your new loan — increasing the amount you borrow and the total interest you'll pay. This calculator includes that in the loan amount automatically.
- Is a 72 or 84 month car loan a good idea?Longer terms reduce monthly payments but significantly increase total interest and leave you underwater longer. They're generally best avoided unless absolutely necessary — a 60-month loan is the standard sweet spot for most buyers.