Auto Loan Calculator

Calculate your monthly car payment in seconds. Enter the vehicle price, down payment, trade-in value, loan term, interest rate, and sales tax to see your exact monthly payment, total interest paid, and total cost of the loan.

Monthly Car Payment Calculator

How Auto Loan Payments Are Calculated

Your monthly payment is determined using the standard amortization formula for installment loans:

M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]

Where P = loan principal, r = monthly interest rate (APR ÷ 12 ÷ 100), and n = number of months. Sales tax is applied to the vehicle price before subtracting the down payment and trade-in value.

Loan TermAvg APR (Good Credit)Avg APR (Fair Credit)
24 months~5.5%~10%
36 months~5.8%~10.5%
48 months~6.0%~11%
60 months~6.5%~12%
72 months~7.0%~13%
84 months~7.5%~14%

Frequently Asked Questions

How much should I put down on a car?+
Financial experts typically recommend a down payment of at least 20% for a new car and 10% for a used car. A larger down payment reduces your loan amount, lowers monthly payments, reduces total interest paid, and helps you avoid being "underwater" (owing more than the car is worth). If you can't put 20% down, consider a less expensive vehicle or waiting until you can save more.
Is a longer loan term better?+
A longer term lowers your monthly payment but significantly increases the total interest you pay. For example, a $25,000 loan at 7% APR costs $594/mo over 48 months (total interest: $3,500) vs. $436/mo over 72 months (total interest: $6,400). Additionally, longer-term loans increase the risk of being upside-down on your loan since cars depreciate faster than you pay down the balance.

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How Loan Payments Are Calculated

Any fixed-rate auto loan uses the amortization formula to determine your monthly payment. The math is straightforward: each payment covers the interest that has accrued on the remaining balance, with the rest reducing the principal. Early payments are interest-heavy; later payments are mostly principal.

The Amortization Formula

M = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]

A higher rate or longer term both increase total interest paid — but a longer term reduces your monthly payment. This calculator lets you explore those trade-offs instantly.

How to Use This Calculator

  1. Enter your loan amount (how much you need to borrow)
  2. Enter the interest rate (APR, not monthly rate)
  3. Select the loan term in months or years
  4. Click Calculate to see monthly payment, total interest, and total repayment cost

Example: $25,000 Loan at 8% for 5 Years

Monthly payment: $506.91

Total paid: $30,414.60

Total interest: $5,414.60 — that's 21.7% of the original loan amount paid in interest.

Bumping the rate to 12%: monthly payment rises to $556.11, total interest jumps to $8,366.60. The rate difference alone costs you an extra $2,952.

Tips for Reducing Loan Costs

Making even one extra payment per year toward principal can shave months off the loan and hundreds to thousands in interest. Some lenders allow this with no prepayment penalty — check your loan agreement before making extra payments.