Auto Loan Calculator
Calculate loan payments, interest costs, and repayment schedules.
Vehicle Details
Purchase price of the vehicle
Typical: 10-20% for autos
Value of your current vehicle trade-in
Good credit: 4-7% typical
Max 8 years for new vehicles
Local sales tax rate
Fees & Add-ons
Dealer documentation fee
State registration and title fees
Optional extended warranty (if any)
Guaranteed Asset Protection insurance
Personal Information
Higher scores qualify for better rates
Gross monthly income
Other loan and credit card payments
Auto Loan Results
Monthly Payment
Principal & Interest
Amount Financed
After down payment & trade
Total Interest
Over loan term
Amount Financed vs Interest
Cost Breakdown
Affordability Analysis
⚠ Consider a less expensive vehicle or larger down payment
Loan Summary
Auto Loan Tips
- • Get pre-approved to know your budget and negotiate better
- • Consider certified pre-owned for better rates than used
- • Put down at least 20% to avoid being upside-down
- • Shorter terms save money but increase monthly payments
- • Shop rates from banks, credit unions, and dealers
- • Factor in insurance, maintenance, and depreciation costs
How it works
An auto loan calculator first works out the amount you actually finance — the vehicle price plus tax and fees, minus your down payment and any trade-in — then amortizes it into a fixed monthly payment. The smaller the financed amount and the shorter the term, the less interest you pay overall.
Monthly payment (amortizing loan)
M = P · r(1 + r)ⁿ / [(1 + r)ⁿ − 1]
- M
- monthly payment
- P
- amount financed (price + tax + fees − down payment − trade-in)
- r
- monthly rate (APR ÷ 12)
- n
- number of payments (years × 12)
Worked example
- $30,000 car with $5,000 down → P = $25,000 financed
- APR = 6% → r = 0.06 ÷ 12 = 0.005
- 5-year term → n = 60 payments
- (1 + r)ⁿ = 1.005⁶⁰ ≈ 1.349
- M = 25,000 × 0.005 × 1.349 ÷ (1.349 − 1)
Monthly payment ≈ $483 — roughly $4,000 in interest over 5 years.
Good to know
- Sales tax and dealer fees are usually rolled into the loan, so you pay interest on them too — a bigger down payment trims that.
- Long terms (72–84 months) lower the payment but raise total interest and keep you “underwater” (owing more than the car is worth) for longer.
- A car is a depreciating asset, so unlike a mortgage there's no appreciation to offset the interest — paying it off early is almost always a win.
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Frequently Asked Questions
How do I determine the best loan terms?
Compare APR (not just interest rate), total cost, monthly payment affordability, and loan terms. Lower payments may mean more total interest.
How does my credit score affect loan terms?
Higher credit scores typically qualify for lower interest rates and better terms. Improve your score before applying for the best rates.
Should I get pre-approved before car shopping?
Yes, pre-approval gives you negotiating power, sets a realistic budget, and helps you compare dealer financing. It typically involves a soft credit check that won't impact your score.
What is the 20/4/10 rule for auto loans?
This rule suggests: 20% down payment, 4-year loan term maximum, and total monthly vehicle expenses under 10% of gross income. It helps ensure affordable car ownership.
When should I consider refinancing my auto loan?
Consider refinancing if interest rates have dropped, your credit score has improved significantly, or you need to lower monthly payments. Typically worthwhile if you can reduce your rate by 2% or more.
How do taxes and fees affect my auto loan?
Sales tax, registration, dealer fees, and warranties can add thousands to your loan amount. Factor these into your budget - they can increase your total cost by 10-15% or more.