Auto Loan Calculator
Calculate your monthly car payment, total interest, and full repayment schedule
Results & Details
// Cost Breakdown
Repayment Schedule
| Period | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 🚗 Calculate above to see your repayment schedule | ||||
How to Use the Auto Loan Calculator
Enter the vehicle price, your down payment, any trade-in value, the loan interest rate (APR), and loan term in months. You can also include a sales tax rate to see the true cost of your car purchase. Use the New / Used toggle to switch between typical rate defaults.
How Auto Loan Payments Are Calculated
Your loan amount is the vehicle price minus your down payment and trade-in value, plus any applicable sales tax. Monthly payments are then calculated using standard loan amortization.
New vs Used Car Loan Rates
New car loans typically offer lower interest rates (3–6%) because the vehicle holds its value better as collateral. Used car loans usually carry higher rates (5–12%) due to greater depreciation risk. Your credit score is the biggest factor in the rate you'll be offered.
What Loan Term Should I Choose?
Common auto loan terms are 36, 48, 60, and 72 months. A shorter term means higher monthly payments but less total interest. Longer terms (72–84 months) lower your payment but increase total cost and risk of being "underwater" — owing more than the car is worth.
Should I Include a Trade-In?
A trade-in directly reduces your loan amount. Enter your car's estimated trade-in value to see how it affects your monthly payment and total cost. Many dealers allow you to apply a trade-in toward a new purchase even if you still owe money on it.
Car Loans: The Math Dealers Hope You Skip
Built and verified by Andrius R. · Updated June 2026
Car financing is sold on one number — the monthly payment — because that's the number easiest to manipulate. Stretch the term, fold in add-ons, and almost any car "fits your budget." Here's the math that shows what's really happening.
The term-length trade-off, with real numbers
| Term | Monthly payment | Total interest |
|---|---|---|
| 48 months | $718.39 | ~$4,483 |
| 60 months | $594.04 | ~$5,642 |
| 72 months | $511.47 | ~$6,826 |
Going from 48 to 72 months cuts the payment by $207 — and raises the total interest by ~$2,340. The dealer presents this as "more affordable." It's the same car, costing more.
Why long loans are riskier than they look: negative equity
A new car typically loses roughly 20% of its value in year one and around half within five years, while a long loan pays principal down slowly in the early years (when most of each payment is interest). The result: for much of a 72- or 84-month loan you owe more than the car is worth — called being "upside down" or in negative equity. Total your car or need to sell during that window, and you must pay the gap out of pocket. The longer the term and the smaller the down payment, the longer you're exposed.
How to actually compare offers
- Negotiate the car price first, separately from financing. "What monthly payment are you looking for?" is the dealer's favorite question because it hides the price, rate and term in one blendable number. Settle the price, then discuss money.
- Get a pre-approved rate from a bank or credit union before visiting. Dealer financing can beat it (manufacturers subsidize promotional rates) — but you'll only know it's a good offer if you have a benchmark.
- Compare APR, not rate, and not payment. The APR folds in mandatory fees and is the only legally standardized comparison number.
- Watch the add-ons: extended warranties, paint protection, GAP insurance and "doc fees" rolled into the loan mean you pay interest on them for the whole term. GAP coverage specifically is often worthwhile on low-down-payment loans — but it's usually far cheaper from your insurer than from the dealer.
The 20/4/10 sanity check
A long-standing affordability guideline: put at least 20% down, finance for no more than 4 years, and keep total vehicle costs (payment, insurance, fuel) under 10% of gross income. Few buyers hit all three today — average new-car loans now run well past 60 months — but the further an offer drifts from this rule, the louder the warning that the car costs more than the budget really allows.
New vs used, in loan terms
Used-car loan rates run higher than new-car rates (typically 1–4 points more), but the car has already taken its steepest depreciation hit, so the total-cost math usually still favors a 2–4-year-old vehicle. Run both scenarios in the calculator above with realistic rates and compare total cost of ownership, not just payments.
// 20% Rule
Aim for a down payment of at least 20% to avoid being underwater on your loan early on.
// APR vs Rate
APR includes fees and is the true annual cost. Always compare APRs when shopping lenders.
// Keep It Short
Aim for 48–60 months max. Loans over 72 months significantly increase total interest paid.
// Pre-approval
Get pre-approved before visiting a dealer — it gives you negotiating power and a rate benchmark.