Auto Loan Calculator
Estimate your monthly car payment, compare loan terms, and see how extra payments can save you thousands in interest.
Vehicle & Loan Details
Value of vehicle you're trading in
Loan Term
Optional extra payment toward principal each month
Loan Summary
Monthly Payment
$586.98
Loan Amount
$30,000.00
Total Interest
$5,219.07
Total Cost of Loan
$35,219.07
Payoff Time
60 months (5.0 yr)
Total Out-of-Pocket
$40,219.07
Cost Breakdown
Term Comparison
| Term | Monthly | Total Interest | Total Cost |
|---|---|---|---|
| 24 mo (2 yr) | $1,336.39 | $2,073.30 | $32,073.30 |
| 36 mo (3 yr) | $919.47 | $3,100.92 | $33,100.92 |
| 48 mo (4 yr) | $711.45 | $4,149.53 | $34,149.53 |
| 60 mo (5 yr) | $586.98 | $5,219.07 | $35,219.07 |
| 72 mo (6 yr) | $504.30 | $6,309.45 | $36,309.45 |
| 84 mo (7 yr) | $445.48 | $7,420.58 | $37,420.58 |
Your selected term is highlighted. Shorter terms cost more monthly but save significantly on interest.
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How to Use the Auto Loan Calculator
This auto loan calculator helps you estimate your monthly car payment and understand the true cost of financing a vehicle. Whether you are buying new or used, this tool shows you exactly how much you will pay in principal and interest over the life of the loan — and how to save money with the right strategy.
Setting up your loan: Enter the vehicle price and your down payment. If you are trading in a car, enter its value separately — the calculator subtracts both from the purchase price to determine your loan amount. Set your interest rate (APR) and select a loan term using the quick-select buttons from 24 to 84 months.
Understanding the results: The loan summary shows your monthly payment, total interest, total cost, and payoff timeline at a glance. The cost breakdown bar visualizes how much of your total payment goes to principal vs interest. The term comparison table is especially useful — it shows the monthly payment, total interest, and total cost for every standard term so you can weigh the trade-off between a lower monthly payment and lower overall cost.
Early payoff with extra payments: Enter an extra monthly payment amount to see how much you can save. Even $50 or $100 extra per month can cut months off your loan and save hundreds or thousands in interest. The green savings panel shows exactly how much interest you save and how many months earlier you will be debt-free.
Amortization schedule: Click to expand the full month-by-month breakdown showing how each payment splits between principal and interest. Early payments go mostly toward interest; as the loan progresses, more goes to principal. This is why extra payments early in the loan have the biggest impact. Use the share button to save your scenario and compare different options by opening multiple tabs.
Frequently Asked Questions
How is my monthly car payment calculated?
Your monthly car payment is calculated using the standard amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount (vehicle price minus down payment and trade-in), r is the monthly interest rate (APR divided by 12), and n is the number of monthly payments. The calculator handles this automatically — just enter your numbers and see the result instantly.
What is a good interest rate for a car loan?
Auto loan rates vary based on your credit score, loan term, and whether the car is new or used. As of recent averages: excellent credit (750+) can expect 4-6% on new cars, good credit (700-749) around 6-8%, fair credit (650-699) around 8-12%, and poor credit (below 650) may see 12-20% or higher. Used car loans typically carry rates 1-2% higher than new car loans. Credit unions often offer lower rates than banks or dealer financing.
Should I choose a longer or shorter loan term?
Shorter terms (36-48 months) mean higher monthly payments but significantly less total interest — you could save thousands of dollars. Longer terms (60-84 months) lower your monthly payment but cost more overall and carry the risk of being 'underwater' (owing more than the car is worth) for longer. The term comparison table in this calculator shows the exact dollar difference so you can make an informed decision based on your budget.
How much can I save with extra payments?
Even small extra monthly payments can save significant money on an auto loan. For example, on a $30,000 loan at 6.5% for 60 months, an extra $100/month saves about $1,100 in interest and pays off the loan 11 months early. The calculator shows your exact savings — try entering different extra payment amounts to find what works for your budget.
Should I make a larger down payment?
A larger down payment reduces your loan amount, which lowers both your monthly payment and total interest paid. It also reduces the risk of negative equity (owing more than the car is worth). Financial experts typically recommend putting at least 20% down on a new car and 10% on a used car. However, if your auto loan rate is very low, you might prefer investing the extra cash elsewhere for a higher return.
How does trade-in value affect my loan?
Your trade-in value is subtracted from the vehicle price before calculating the loan amount, just like a down payment. For example, if you're buying a $35,000 car with a $5,000 down payment and $8,000 trade-in, your loan amount is $22,000. Getting an accurate trade-in valuation from resources like Kelley Blue Book or Edmunds before visiting the dealer helps you negotiate a fair deal.