Auto Loan Calculator
Work out your monthly car payment, total interest and full amortization schedule.
Estimates only - your actual rate and fees depend on the lender, your credit score and your state. Always get a written quote before signing.
Loan Details
About Auto Loans
Tips for a cheaper car loan
- Shop your loan with banks and credit unions before visiting the dealer
- A bigger down payment lowers your monthly payment and interest paid
- Choose the shortest term you can comfortably afford
- Watch out for "yo-yo financing" - get all terms in writing before driving off
- Check your credit score beforehand - better credit means lower APR
New vs used car loan rates
New car loans typically carry lower APRs than used car loans because the lender's risk is lower. Used car loans, especially for older vehicles, often carry higher rates and shorter maximum terms.
Quick Tips
- Aim for 20% down on new, 10% on used
- Keep total loan term under 60 months if possible
- Compare offers from banks, credit unions and the dealer
- Watch the total cost, not just the monthly payment
Frequently Asked Questions
Auto loans use standard amortization: each monthly payment is the same and covers interest (charged on the outstanding balance) plus a portion of principal. The formula is M = P x r x (1+r)^n / ((1+r)^n - 1), where P is the amount financed, r is the monthly interest rate (APR/12), and n is the number of months.
The amount financed is the vehicle price plus sales tax and any fees, minus your down payment and trade-in value. This is the actual amount you borrow and pay interest on - not the sticker price of the car.
Shorter terms (36-48 months) mean higher monthly payments but much less total interest, and you build equity faster, reducing the risk of being "upside down" (owing more than the car is worth). Longer terms (72-84 months) lower the monthly payment but significantly increase total interest paid and depreciation risk.
A common rule of thumb is 20% down for a new car and 10% for a used car. A larger down payment reduces the amount financed, lowers your monthly payment, and helps avoid negative equity since cars depreciate quickly in the first few years.
In most states, yes - trade-in value is deducted from the purchase price before sales tax is calculated, which can mean significant tax savings. This calculator assumes tax is applied after the trade-in is deducted; rules vary by state, so confirm with your dealer or state DMV.