Finance
Auto Loan Calculator
Project monthly payment, total interest, and total cash outlay.
Loan Inputs
Loan Summary
Enter your loan details and calculate to see your payment and amortization schedule.
Data last verified: 2026-09-28 — Experian figures re-checked. Rates change; confirm current figures before acting.
How to Use This Calculator
Start by entering the vehicle’s sticker price — including any dealer add-ons you plan to finance. Add the amount you are putting down in cash, plus the value of any trade-in vehicle. The calculator subtracts your down payment and trade-in from the (tax-inclusive) vehicle price to arrive at the principal loan amount. Then set the annual interest rate (APR) your lender has quoted and choose a loan term in months — 36, 48, 60, 72, or even 84.
Once you click Calculate, you’ll see your estimated monthly payment, the total interest paid over the full term, and the total cash outlay (total loan payments plus cash down, excluding surrendered trade-in equity). The amortization table breaks down every single payment: how much goes to principal reduction versus interest, and the remaining balance after each month. Use this table to see how quickly (or slowly) you build equity in the vehicle.
To compare scenarios — for example, a 48-month term at 5.9% APR versus a 72-month term at 6.7% APR — simply adjust the inputs and recalculate. Seeing the side-by-side difference in total interest can help you decide whether a lower monthly payment is worth the extra long-term cost. You can also test the impact of a larger down payment: adding $2,000 more upfront reduces the principal, which lowers both the monthly payment and the lifetime interest.
Detailed worked example
Imagine you are buying a 2025 mid-size SUV priced at $42,000. You plan to put $6,000 down and your current car is worth $3,500 as a trade-in. Your local credit union offers 6.5% APR for 60 months, and your state charges 7% sales tax on vehicle purchases.
Here is how the numbers break down:
Taxed vehicle price: $42,000 × 1.07 = $44,940
Down payment: −$6,000 Trade-in: −$3,500
Financed amount: $35,440
Monthly payment (60 mo @ 6.5%): ~$694
Total interest over 60 months: ~$6,165
Total loan payments (amount financed plus interest): ~$41,605
Now consider the same vehicle with a 72-month term. This example uses a 6.9% APR for comparison — enter your actual quoted APR. The monthly payment drops to about $603, but total interest balloons to roughly $7,940. The longer term costs you an extra $1,776 in interest — money you could have invested or saved. If your budget allows $694 per month, the 60-month option is the financially smarter choice. Use the calculator to run your own numbers before visiting the dealership.
Key terminology
Methodology and sources
This calculator uses the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the principal (vehicle price plus sales tax, minus down payment and trade-in value), r is the monthly interest rate (APR / 12), and n is the total number of monthly payments. Sales tax is applied automatically using the sales-tax rate you enter, and a loan term of zero months is guarded — the payment computes on a minimum term of one month. Dealer documentation charges, registration and title fees, insurance, and warranty or add-on costs are not included automatically — adjust the vehicle price upward to account for them for the most accurate estimate.
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Common mistakes to avoid
- Focusing only on monthly payment: Dealers love to ask "what monthly payment can you afford?" This obscures the total cost. Always negotiate the out-the-door price first, then use the calculator to find a payment that fits your budget.
- Ignoring the APR in favor of the rate: Some ads show low rates but add fees. APR includes everything — interest rate plus origination fees, documentation fees, and any lender charges. Always compare APRs, not teaser rates.
- Rolling negative equity into a new loan: If you owe more than your current car is worth, adding that deficit to a new loan means you pay interest on old debt for years. Try to pay down negative equity before trading in.
- Forgetting insurance costs: A financed vehicle requires full-coverage insurance, which can add $100–$300 per month depending on your driving record, age, and location. Factor this into your total monthly transportation cost.
- Skipping a pre-purchase inspection: For used cars, a mechanic’s inspection ($100–$150) can reveal costly hidden problems that affect your loan decision.
Frequently asked questions
What is a good APR for a car loan right now?
Per Experian’s State of the Automotive Finance Market report (Q2 2026, VantageScore 4.0): average new-car APR 6.35%, used 11.19%. By credit band, new/used averages: super prime (781+) 4.41%/6.29%; prime (661–780) 6.15%/8.81%; near prime (601–660) 9.71%/13.93%; subprime (501–600) 13.52%/19.10%; deep subprime (300–500) 16.11%/21.62%. Your own rate depends on lender, term, and vehicle; enter the APR from your lender or pre-approval for the most accurate result.
How much should I put down on a car?
A common industry guideline is at least 20% down on a new car and 10% on a used car (a rule of thumb, not a lender requirement — some loans allow little or nothing down). A larger down payment reduces the principal, lowers monthly payments, cuts total interest, and helps you avoid being underwater (owing more than the vehicle is worth) during the first year of ownership. For a $40,000 car, 20% is $8,000 — which saves roughly $1,500 in interest over a 60-month loan compared to putting nothing down.
Is a 72-month or 84-month car loan a bad idea?
Extended-term loans (72–84 months) lower your monthly payment but come with significant trade-offs. You pay substantially more total interest, you remain in negative equity longer (making it harder to trade in or sell), and the car’s warranty may expire before the loan is paid off. A common planning heuristic: compare the total interest across term lengths before choosing. The 60-month term used in this example is an example term, not a general recommendation. Compare total interest across term lengths: longer terms (72–84 months) lower the payment but increase total interest.
Can I refinance my auto loan later?
Yes. If your credit score has improved since you took out the original loan, or if market interest rates have dropped, refinancing can reduce your APR and save hundreds or thousands of dollars. You can use this calculator to model a refinance: enter your current loan balance as the vehicle price, set down payment and trade-in to $0, and input the new rate and remaining term. Compare the total interest to your current loan — if the savings outweigh any refinancing fees, it is worth doing.
How does a trade-in affect my auto loan?
A trade-in reduces the amount you need to finance dollar-for-dollar. If your trade-in is worth $5,000 and you owe $3,000 on it, that’s $2,000 in positive equity applied to the new loan. If you owe more than it’s worth (negative equity), the difference gets added to the new loan balance — increasing both your payment and total interest. Check your trade-in’s value on Kelley Blue Book or Edmunds before visiting the dealer so you walk in with a fair number.