Auto Loan Calculator

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.

Understanding Your Auto Loan Payment

An auto loan payment is driven by four numbers: the amount financed, the interest rate (APR), the loan term, and any down payment or trade-in. Because cars depreciate quickly, the interplay of term and rate matters more than buyers often realize — a longer term shrinks the monthly payment but raises total interest and keeps you owing more than the car is worth for longer. This calculator breaks your payment into principal and interest and shows the full amortization so you can see exactly where your money goes.

Worked Example

Finance $30,000 at 7% over 60 months and your payment is about $594, with roughly $5,600 in total interest. Shorten that to 48 months and the payment rises to about $718, but total interest drops to around $4,460 — you pay over $1,000 less to borrow the same money. Stretch instead to 72 months and the payment eases to about $512, but interest climbs past $6,800. The calculator lets you slide the term and rate to find the balance between a payment you can manage and an interest bill you can stomach.

Trade-Ins, Taxes, and Fees

The amount you actually finance is rarely just the sticker price. A trade-in reduces it, and in many states it also lowers the sales tax you owe, since tax is assessed on the difference. Sales tax, title, registration, and dealer fees push the financed amount up, and rolling negative equity from a previous loan into the new one inflates it further. Entering these accurately gives a payment you can trust. As a rule, securing financing before you visit the dealer — through a bank or credit union — gives you a rate to beat and strengthens your negotiating position.

• What's a good interest rate on a car loan?
  Rates depend heavily on your credit score, the loan term, and whether the car is new or used. Borrowers with strong credit qualify for the lowest advertised rates; checking your credit and getting pre-approved helps you know what's realistic.
• Does a bigger down payment lower my payment?
  Yes. A larger down payment reduces the amount financed, which lowers both the monthly payment and the total interest, and it helps you avoid being underwater early in the loan.
• Should I finance through the dealer?
  Dealer financing is sometimes competitive, especially with promotional rates, but it pays to compare against a bank or credit union pre-approval. Bring an outside offer and let the dealer try to beat it.