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Auto Loan Calculator

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Work out your monthly car payment before you visit the dealership. Enter the vehicle price, your down payment or trade-in value, the interest rate, and the loan term.

Auto Loan Calculator

Live
Monthly payment
$561.06
Amount financed
$28,000.00
Total interest
$5,664
Estimate only — doesn't include tax, title, registration, or dealer fees.

The auto loan payment formula

M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1]

P is the amount financed (price minus down payment/trade-in), r is the monthly rate, and n is the loan term in months.

Example

A $32,000 car with a $4,000 down payment leaves $28,000 financed. At 7.5% over 60 months: M ≈ $561.06/month, with about $5,664 in total interest.

Step-by-step guide

  1. Enter the vehicle price, including any add-ons you're financing.
  2. Enter your down payment or trade-in value.
  3. Enter the interest rate — this depends heavily on your credit score and whether the loan is new or used.
  4. Enter the term in months — common terms are 36, 48, 60, or 72 months.

Common mistakes

Choosing a longer term purely to lower the monthly payment — a longer term almost always means more total interest, and the car may be worth less than the remaining loan balance for longer.
Forgetting sales tax, registration, and dealer fees, which are often financed along with the vehicle and increase the real amount borrowed.

Frequently asked questions

Should I finance for 72 months to lower my payment?

A longer term lowers the monthly payment but increases total interest paid and stretches out the period where you may owe more than the car is worth. Compare the total interest figure across a few term lengths before deciding.

Does my trade-in reduce the loan the same way as a down payment?

Yes, for this calculation — both reduce the amount you need to finance. In practice, dealers may also apply your trade-in value toward tax credits depending on your state's rules.

Is a lower interest rate always better?

Usually, yes — but compare the total cost (price + interest + fees) across offers, not just the rate, since some low-rate offers come with a higher vehicle price.

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