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Auto Loan Calculator

Updated January 2026

An auto loan calculator helps you estimate your monthly car payment based on the vehicle price, down payment, trade-in value, interest rate, and loan term. Know exactly what you'll pay before you visit the dealership.

How to Use This Calculator

Enter the vehicle's price, your down payment, and any trade-in value. Add the interest rate (APR) and choose a loan term between 12 and 84 months. Click Calculate to see your monthly car payment, total interest paid over the loan term, and the full amount you'll pay including financing costs.

How It's Calculated

Auto loans use the same amortization formula as mortgages:

M = P × [ i(1+i)^N ] / [ (1+i)^N − 1 ]

Where P is the loan amount (vehicle price minus down payment and trade-in value), i is the monthly interest rate (APR / 12), and N is the total number of monthly payments (loan term in months). Total interest = (M × N) − P.

Frequently Asked Questions

Your monthly car payment is calculated using the same amortization formula used for mortgages. It takes the loan amount (car price minus down payment and trade-in value), the monthly interest rate (APR divided by 12), and the loan term in months. The formula spreads the principal and interest evenly across each month of the loan term.
A longer loan term — such as 72 or 84 months — lowers your monthly payment but costs significantly more in total interest. For example, a $35,000 loan at 6% for 48 months costs about $822/month with $4,444 total interest. The same loan over 72 months drops to $580/month but costs $6,760 in total interest. Longer terms also mean you're more likely to be "upside down" (owing more than the car is worth) for longer.
Interest rates vary widely based on your credit score, loan term, and whether you're buying new or used. As of 2026, borrowers with excellent credit (750+) may qualify for rates around 3–5% on new cars and 5–7% on used cars. Good credit (700–749) might see 5–7% new and 7–10% used. Subprime borrowers often face double-digit rates. Checking rates from multiple lenders — including credit unions, banks, and dealer financing — can save you thousands.

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