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Auto Loan Calculator

Find your monthly car payment and total loan cost instantly — enter the vehicle price, down payment, trade-in, interest rate, and term.

Inputs

The purchase price (sticker or negotiated price) before taxes and fees.

Cash you pay at signing. Reduces the amount financed.

Dealer credit for your current vehicle. Applied like a down payment.

%

The annual percentage rate (APR) from your lender or dealer financing offer.

Longer terms lower the monthly payment but increase total interest paid.

Results update as you type, and the address bar keeps your numbers so the link you share reopens this exact calculation.

Monthly payment

$594

Detailed results
Total interest paid$5,642
Total cost of loan$35,642
Amount financed$30,000

What this result means

Monthly payment: $594.

Financing $30,000 at 7% for 60 months (5 years) gives a monthly payment of $594. Over the life of the loan you will pay $5,642 in interest, bringing the total cost to $35,642. Increasing your down payment or trade-in by $1,000 reduces the loan and saves roughly $175 in interest.

Month-by-month amortization schedule

Every payment broken down into principal and interest, with the remaining balance after each payment.

Month-by-month amortization schedule. 60 rows, first 12 shown.
MonthPaymentPrincipalInterestRemaining balance
1$594$419$175$29,581
2$594$421$173$29,159
3$594$424$170$28,736
4$594$426$168$28,309
5$594$429$165$27,880
6$594$431$163$27,449
7$594$434$160$27,015
8$594$436$158$26,578
9$594$439$155$26,139
10$594$442$152$25,698
11$594$444$150$25,254
12$594$447$147$24,807

How this is calculated

M = P · r(1+r)^n / ((1+r)^n − 1)
where P = vehicle_price − down_payment − trade_in
      r = APR / 12  (monthly rate)
      n = term in months
When r = 0: M = P / n

How auto loan payments are calculated

An auto loan is a simple fixed-rate installment loan. The lender uses the same amortization formula used for mortgages:

M = P × r(1+r)^n / ((1+r)^n − 1)

where P is the amount financed (vehicle price minus down payment and trade-in value), r is the monthly interest rate (APR ÷ 12), and n is the loan term in months. The result is a fixed monthly payment that covers both interest and principal in every period, with the balance reaching zero on the final payment.

Amount financed vs. vehicle price

Your monthly payment is driven by the amount financed, not the vehicle price. Every dollar of down payment or trade-in credit reduces the principal directly, saving you interest on that dollar for every remaining month. On a 60-month loan at 7%, putting an additional $2,000 down reduces total interest paid by roughly $370 and cuts the monthly payment by about $40. This is why negotiating a better trade-in value or saving a larger down payment before buying materially reduces the loan's total cost.

How the APR affects total cost

APR (annual percentage rate) is the annualized cost of borrowing. For a simple installment loan with no fees, APR equals the interest rate. Each month's interest charge is the remaining balance multiplied by the monthly rate (APR ÷ 12). In the first month nearly all of the interest charge applies to the full balance; as the balance falls, so does the monthly interest owed — but the payment stays constant, so more of each payment goes to principal over time. This is standard amortization front-loading.

On a $30,000 loan, the difference between 5% and 9% APR over 60 months is roughly $3,100 in total interest. Getting a lower rate through a credit union, improving your credit score, or making a larger down payment pays dividends across every month of the loan.

Term length and the payment–cost trade-off

Longer loan terms (72 or 84 months) produce lower monthly payments, but significantly more total interest — and introduce the risk of being "upside down" (owing more than the vehicle is worth) for an extended period. A 72-month loan on a $30,000 car at 7% costs about $1,400 more in interest than a 48-month loan. Shorter terms cost less overall and build equity faster, but require a higher monthly payment.

Most financial advisors suggest limiting auto loan terms to 48–60 months and aiming to keep total car costs (payment + insurance + maintenance) under 15–20% of take-home pay.

Sales tax, registration, and fees

This calculator computes the loan payment on the financed amount only. Sales tax and registration fees vary widely by state and are often rolled into the loan. If you are financing taxes and fees, add them to the vehicle price before entering it here, or reduce your down payment accordingly to reflect the real amount you are borrowing.

Assumptions

  • The interest rate (APR) is fixed for the entire loan term.
  • Payments are made monthly on time with no prepayment or late fees.
  • The amount financed equals vehicle price minus down payment minus trade-in value; sales tax, registration, and dealer fees are not included.
  • All calculations use monthly compounding at r = APR / 12.
  • No balloon payment or interest-only period is modelled.
  • Trade-in value is applied as a direct credit against the vehicle price (not as a separate payoff of an existing loan).

Frequently asked questions

›Should I get financing from the dealer or my bank?

Dealers often offer promotional rates (0% or low APR) on new vehicles through manufacturer financing, which can be excellent deals — but check the fine print for term restrictions and whether the promotional rate requires forgoing a cash rebate. For used vehicles or when dealer rates are not competitive, credit unions and banks frequently offer lower rates than dealer-arranged financing. Always get a pre-approval from your bank or credit union before visiting the dealer so you have a benchmark rate to compare against.

›What credit score do I need to get a good auto loan rate?

Lenders tier auto loan rates by credit score. Borrowers with scores above 720 typically qualify for the best rates (often 5–7% on new cars at current market rates). Scores between 660–719 receive mid-tier rates, and scores below 620 often face subprime rates of 15% or more. Improving your score before applying — by paying down revolving debt and correcting any errors on your credit report — can save thousands over the loan term.

›How does a trade-in reduce my payment?

A trade-in works exactly like a down payment: the dealer credits the trade-in value against the vehicle price, reducing the amount you need to finance. If your trade-in is worth $8,000 and you also put $2,000 down, you are financing $10,000 less than the vehicle price. The catch is that dealers often offer below-market trade-in values. Getting an independent appraisal (from services like CarMax, Carvana, or KBB Instant Cash Offer) before negotiating gives you leverage to ensure you receive fair value.

›What does 'upside down' on a car loan mean, and how do I avoid it?

Being upside down (or 'underwater') means you owe more on the loan than the car is currently worth. This happens most often with long loan terms (72–84 months) or small down payments, because vehicles depreciate faster than the balance falls in the early months of a long loan. If you need to sell or total the car while upside down, you still owe the difference. To avoid it: make a down payment of at least 10–20%, keep terms to 60 months or less, and consider gap insurance if you do use a long term.

›Is 0% APR dealer financing always the best deal?

Not always. Manufacturers often require you to choose between a 0% APR offer and a cash rebate — not both. If a $3,000 rebate is available, compare: (1) the 0% financed total vs. (2) applying the rebate as a down payment at your bank's rate. On a $35,000 vehicle with a $3,000 rebate vs. 0% for 60 months, taking the rebate and financing at 5% often costs less in total. Run both scenarios in this calculator to see which is better for your specific numbers.

›Should I pay off my auto loan early?

Paying off an auto loan early saves interest, but auto loan rates are typically lower than credit card debt or personal loans. If you carry high-interest debt, pay that first. If you have no other high-rate debt and your loan rate exceeds what a savings account earns (likely), paying down the auto loan is a guaranteed, risk-free return equal to your rate. Check your loan agreement for prepayment penalties — most modern auto loans have none, but older or subprime loans sometimes do.

›Why is the total cost of the loan higher than the vehicle price?

The vehicle price covers the asset itself. The loan's total cost also includes interest — the price of borrowing money over time. On a $30,000 loan at 7% for 60 months, total interest is about $5,600, making the true cost of the purchase $35,600. This is why paying cash (if possible) or making a large down payment lowers your overall cost: you are buying less of the vehicle with borrowed money.

›Are taxes and fees included in this calculator?

No. Sales tax, title fees, registration, and dealer fees vary by state and transaction. Many buyers roll these into the loan, which increases the amount financed and the total interest paid. To include them in this calculator, add them to the vehicle price or subtract them from your down payment to reflect the true amount being financed.

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