Auto Loan Calculator
See your monthly car payment and how much interest you'll really pay over the life of the loan.
Loan details
Enter your numbers
Reduces the price and the taxable amount
Varies by state, often financed into the loan
Common terms: 36, 48, 60, 72 months
Extra principal each month pays the loan off sooner and saves interest
Your payment
Estimated monthly cost
Monthly payment
$646
Amount financed
Total interest
$6,131
Total Cost (loan + interest)
$38,731
Where your money goes
Loan principal vs. interest over the full term
Interest is 16% of everything you'll pay.
Tips for a smarter car loan
How this auto loan calculator works
A $35,000 car with $5,000 down, 6% sales tax, and $500 in fees financed at 7% over 60 months runs about $645 a month. A longer loan term lowers that monthly payment, but it also increases the total interest paid, on an asset that keeps losing value the whole time.
Where possible, aim for the shortest term you can comfortably afford. Put at least 20% down if you can, and shop for financing before you visit the dealer rather than after. Even a 1 or 2 percentage point lower rate saves real money over the life of the loan.
The trap of stretching the term
Dealers like long terms because a 72 or 84-month loan makes almost any car look affordable on a monthly basis. The problem is that cars depreciate faster than a long loan pays them down, so buyers who stretch the term often owe more than the car is worth for years. That gap is called being underwater, and it turns into a real problem the moment you need to sell the car or it gets totaled.
A 60-month loan is a reasonable ceiling for most buyers. If the payment on a 60-month term does not fit the budget, the honest fix is a cheaper car, not a longer loan.
Financing before you shop, not after
Get pre-approved by a bank or credit union before you set foot on a lot. Walking in with your own financing already arranged gives you a number to compare the dealer's offer against, and dealers routinely mark up the rate they get from a lender and pocket the difference. If the dealer beats your pre-approved rate, take it. If not, you already know your fallback.
Trade-ins and the total price
Negotiate the car's price, your trade-in value, and your financing as three separate conversations, not one bundled number. Dealers can make a weak trade-in offer look better by moving money around between those three, and the only way to catch it is to know what each piece is worth on its own before you sit down.
How this is calculated
It works out the fixed monthly payment that pays off the loan over its full term.
Monthly payment uses the standard amortization formula: principal × monthly rate ÷ (1 − (1 + monthly rate) raised to the negative number of months). Total interest is every payment added up, minus the amount you borrowed.
What it assumes
- The interest rate is fixed for the whole loan.
- Every payment is made on time and in full.
- Taxes, fees, and add-ons aren't included in the base loan.
Keep learning
Frequently asked questions
How much should I put down on a car?
A common guideline is at least 20% down on a new car (10% on used), which helps avoid being underwater on the loan, owing more than the car is worth, as it depreciates.
Does a longer loan term save money?
No, a longer term lowers the monthly payment but increases total interest paid, since you're financing the same amount for more months at the same or often a higher rate. Use the shortest term that fits your budget.
Should I finance through the dealer or a bank?
Compare both. Getting pre-approved by a bank or credit union before visiting the dealer gives you a real rate to negotiate against, dealer financing occasionally beats it with manufacturer incentives, but only shopping both tells you which.
Estimates only. Actual rates, fees, and taxes vary by lender and state. This is not a loan offer or financial advice.