Auto Loan Calculator
Estimate your monthly car payment, total interest, and amortization schedule. Includes trade-in, taxes, and fees.
14.3% of vehicle price
per month for 60 months
How to Use This Auto Loan Calculator
- Enter the vehicle price you're considering.
- Enter your planned down payment amount.
- Add a trade-in value (and any remaining loan balance on that vehicle) if you have one.
- Choose your loan term — 60 months is the most common.
- Enter your expected APR. Your credit score is the main driver.
- Open Taxes & Fees to add sales tax, doc fees, and registration costs for a more accurate estimate.
- Review the monthly payment, total interest, and amortization schedule.
How Auto Loan Payments Work
Auto loans are typically fixed-rate amortizing loans. Every month you pay the same amount, but the split between interest and principal changes: early payments are mostly interest, later payments are mostly principal. Our calculator uses the standard amortization formula used by banks and lenders:
M = P × [r(1+r)^n] / [(1+r)^n − 1]
where P is the amount financed, r is the monthly interest rate (APR ÷ 12), and n is the number of monthly payments.
What Affects Your Interest Rate
- Credit score: The biggest factor. 750+ often gets 4–6% APR; below 650 can see 12%+.
- Loan term: Longer terms typically carry slightly higher rates.
- New vs. used: Used vehicles generally cost 2–4% more in APR than new.
- Down payment: 10–20% down can unlock better rates and avoid negative equity.
- Lender type: Credit unions and banks usually beat dealer rate markups.
Choosing the Right Loan Term
Shorter terms (24–48 months) mean higher monthly payments but less total interest and a faster path to positive equity. Longer terms (60–84 months) reduce the monthly payment but increase total interest and the risk of owing more than the car is worth.
Many financial experts recommend the 20/4/10 rule: 20% down, no more than a 4-year term, and total monthly vehicle costs (payment, insurance, fuel, maintenance) under 10% of gross income.
Frequently Asked Questions
How is my monthly car payment calculated?
Your payment is calculated from the amount financed (vehicle price minus down payment and trade-in credit, plus sales tax and fees), the APR, and the loan term. The standard amortization formula distributes principal and interest so each monthly payment is the same.
What credit score do I need for a good auto loan rate?
A score of 700+ generally qualifies for competitive rates (roughly 5–8% APR). Scores above 750 often earn the best rates (4–6%). Below 650, rates climb quickly. Check your credit before shopping and dispute any errors.
Should I pick a longer term for lower payments?
Longer terms cut the monthly payment but raise total interest and the risk of negative equity. Most experts suggest staying at 48–60 months or less. Use this calculator to compare trade-offs before committing.
How does a trade-in affect my loan?
A trade-in reduces the amount you need to finance. If you owe more on your trade-in than it's worth (negative equity), that difference gets added to your new loan — increasing both the balance and total interest.
What is negative equity in a car loan?
Negative equity (being “underwater”) means you owe more than the vehicle is worth. It's common with long terms, small down payments, or rapid depreciation and can cause problems if you sell or trade before the loan is paid off.
Is dealer financing or a bank better?
Compare both. Banks and credit unions often offer the lowest rates. Dealers can occasionally match or beat them with manufacturer promotional rates. Get pre-approved before visiting the dealer so you have leverage.
How much car can I afford?
A common guideline is the 20/4/10 rule: 20% down, a 4-year or shorter term, and total monthly vehicle costs (payment, insurance, fuel, maintenance) under 10% of gross income.
What fees should I expect when buying a car?
Sales tax (5–10% depending on state), a documentation fee ($100–$500), and registration/title fees ($50–$500). Some fees are negotiable. This calculator has fields for each so the total reflects real out-the-door pricing.
Can I pay off my auto loan early?
Most auto loans allow early payoff with no penalty — always check your contract. Extra principal payments can save hundreds or thousands of dollars in interest and shorten your payoff.
What is GAP insurance and do I need it?
GAP (Guaranteed Asset Protection) covers the difference between what you owe and what your car is worth if it's totaled or stolen. It's worth considering with a small down payment, a long term, or a rapidly depreciating vehicle.
Financial disclaimer: This calculator provides estimates for educational purposes only. Actual loan terms, rates, and payments vary based on your credit, lender, and vehicle. Results are not a loan offer.
Not financial advice: Consult a qualified financial advisor or lender for personalized guidance on auto financing. Tax rates and fees shown are estimates; check with your state DMV for current figures.