Auto Loan Calculator

Free auto loan calculator: enter price, down payment, trade-in, rate, and term to see your monthly car payment, total interest, and the real amount financed.

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How the auto loan calculator works

This calculator finds your monthly car payment and the total interest you will pay over the loan. It starts by working out the amount you actually finance, then applies the standard amortization formula over your loan term in months.

financed = price − down payment − trade-in + sales tax

The financed amount is what the loan actually covers. Your down payment and trade-in reduce it directly; sales tax (if your state rolls it into the loan) increases it.

From there, the monthly payment uses the same amortization math as any installment loan, with the term expressed in months (auto loans are usually quoted as 36, 48, 60, or 72 months). Interest is charged on the balance you still owe, so early payments are more interest-heavy and later ones pay down more principal.

Choosing a loan term

The term is the biggest lever on both your payment and your total cost, and it involves a real trade-off:

Shorter terms (36–48 months) mean higher monthly payments but far less total interest, and you spend less time "underwater" — owing more than the car is worth.
Longer terms (72–84 months) lower the monthly payment but cost more overall and keep you in negative equity longer, which is risky if you need to sell or the car is totaled.

A worked example

On a $35,000 car with $5,000 down and no trade-in, you finance $30,000. At 7.5% over 60 months, that is about $601 a month and roughly $6,068 in total interest. Stretch the same loan to 72 months and the monthly payment drops, but you pay noticeably more interest and stay underwater longer. Enter your own numbers above to see the trade-off in real dollars.

How to keep an auto loan sensible

Put more down. A larger down payment or trade-in shrinks the financed amount, lowering both the payment and total interest.
Favor the shortest term you can afford. A car is a depreciating asset, so paying it off faster limits how long you owe more than it is worth.
Shop the APR separately from the car. A better rate — often from your own bank or credit union — can beat dealer financing.

A car loan sits in the gray area between good and bad debt; to think that through, read good debt vs. bad debt.

Frequently asked questions

What term should I choose for a car loan?

Shorter terms (36–48 months) mean higher payments but far less interest and less time "underwater" (owing more than the car is worth). Longer terms (72–84 months) lower the payment but cost more overall and keep you in negative equity longer. Compare a couple of terms above to see the trade-off in real dollars.

Does a trade-in lower my loan?

Yes. A trade-in works like extra down payment: its value is subtracted from the amount you finance, which lowers both your monthly payment and total interest. Enter it above and watch the financed amount drop.

Should I include sales tax?

If your state rolls sales tax into the loan (many do), enter the rate so the financed amount is realistic. If you pay tax separately upfront, leave it at 0.

Related: good debt vs. bad debt.