Auto Loan Calculator
A car's sticker price is only the start. This free US auto loan calculator turns the price, your down payment, the interest rate and the term into the monthly payment, the total interest and the real all-in cost of financing a vehicle.
What is an auto loan calculator?
An auto loan calculator estimates the fixed monthly payment on a car loan and the total cost of financing, so you can see the full price of borrowing before you sign. When you finance a vehicle, the lender pays the dealership and you repay that amount — the financed principal, which is the purchase price minus your down payment — along with interest over the loan term. Your monthly payment is a blend of principal and interest, and the split shifts over time as you pay the balance down.
This calculator uses the standard amortization formula: it takes the amount financed, the annual rate and the term in months, and works out the payment that fully repays the loan. It then shows the total interest — all you pay the lender beyond what you borrowed — and the total cost, which adds your down payment to the monthly payments. Knowing those numbers before you negotiate gives you a realistic budget and a stronger bargaining position.
How to use
- Enter the vehicle price before taxes and fees.
- Enter your down payment, or the amount you will trade in.
- Enter the annual interest rate and the term in months.
- Click Calculate Auto Loan to see the payment and totals.
How auto loan payments are calculated
Amount financed = price − down payment
Monthly payment = P × r × (1+r)^n / ((1+r)^n − 1)
Total cost = down payment + (payment × months)
The rate is monthly (annual rate divided by 12 and 100), and n is the number of monthly payments.
Example
With the defaults — a $35,000 car, a $5,000 down payment, a 6.5% rate and a 60-month term — click Calculate Auto Loan. The amount financed is $30,000, the monthly payment is about $587, the total interest is about $5,219, and the total cost is about $40,219. Now extend the term to 84 months and the payment drops to about $445, but total interest climbs to about $7,421 — a longer loan term costs more in the end.
Common use cases
- Budgeting a purchase: confirm the monthly payment fits your income before you shop.
- Comparing terms: see whether a longer or shorter loan makes sense for your situation.
- Testing a down payment: find the deposit that keeps your payment and interest manageable.
Pro tips
- Shorter terms usually cost less: a 48- or 60-month loan typically has a better rate and much less interest than 72-84 months.
- Put down as much as you can: a bigger down payment lowers the principal, the payment and the interest.
- Finance only what you must: avoid rolling an old loan or extras into a new one.
- Shop your rate first: compare pre-approval offers from multiple lenders before you agree at the dealership.
FAQ
How is a car loan payment calculated?
PMT = P × r × (1+r)^n / ((1+r)^n − 1), where P is the financed amount, r the monthly rate and n the number of monthly payments.
Why does a longer term cost more?
A longer term spreads the loan over more months, so you pay interest for longer. The payment is lower but the total interest is higher.
Does a bigger down payment help?
Yes. A larger down payment shrinks the amount financed, lowering the monthly payment, total interest and total cost.
Does this include sales tax and fees?
No. Enter only the price you finance. Budget separately for sales tax, registration, title and dealer fees.
What is a good auto loan term?
Six years or less is common advice. Shorter terms usually offer better rates and much less total interest.
How do interest rates affect my payment?
A higher rate raises the monthly payment and total interest. A half-point can add or remove thousands over a long term.
What is a reasonable monthly payment?
Many lenders suggest keeping total vehicle costs within about 10-15% of your monthly income, but it depends on your other debts.
Does a trade-in help?
Yes. Trading in a vehicle reduces the amount financed, much like a down payment, cutting the payment and interest.
Can I pay off an auto loan early?
Usually yes, but check for a prepayment penalty. Paying extra principal early saves interest over the life of the loan.
Is this auto loan calculator free?
Yes. It runs entirely in your browser and no data is uploaded anywhere.
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