Car Loan Calculator
Estimate your monthly auto loan payment. Enter the vehicle price, your down payment and trade-in, the interest rate and the loan term to see the payment and total interest.
A car loan spreads the cost of a vehicle over monthly payments, with interest added on top. Your payment depends on how much you finance, the interest rate, and the length of the loan. A bigger down payment or trade-in lowers the amount financed; a longer term lowers the monthly payment but increases the total interest you pay. This calculator brings those pieces together so you can see the real monthly cost before you sign.
How the payment is calculated
First work out the amount financed, then apply the standard loan payment formula using the monthly interest rate and the number of months.
Monthly payment = L × i ÷ (1 − (1 + i)^−n)
where i = APR ÷ 12, n = term in months
| Term | $25,000 at 7% |
|---|---|
| 36 months | $772/mo · $2,790 interest |
| 48 months | $599/mo · $3,741 interest |
| 60 months | $495/mo · $4,702 interest |
| 72 months | $426/mo · $5,681 interest |
Worked example
A $30,000 car, $4,000 down, $2,000 trade-in, 6% sales tax, 7% APR over 60 months:
| Sales tax = (30,000 − 2,000) × 6% | $1,680 |
| Financed = 30,000 + 1,680 − 4,000 − 2,000 | $25,680 |
| Monthly payment | ≈ $508 |
Longer term or bigger payment?
Stretching a loan to 72 or 84 months shrinks the monthly payment but can cost a great deal more in interest, and it raises the risk of owing more than the car is worth. A shorter term costs more each month but far less overall. A larger down payment reduces both the payment and the total interest, and can help you qualify for a better rate. Compare a few combinations here before committing, and remember to budget for insurance, fuel and maintenance on top of the loan.