Auto Loan Calculator
Estimate your monthly car payment and total loan cost.
How is a car payment calculated?
Your monthly auto loan payment is based on the amount you finance (vehicle price minus down payment and trade-in value), the interest rate, and the loan term. Lenders use an amortization formula so that each fixed monthly payment covers a mix of interest and principal, with more going toward interest early in the loan.
Should you choose a longer loan term?
A longer term, like 72 months, lowers your monthly payment but increases the total interest you pay over the life of the loan. A shorter term means higher payments but less interest overall and faster equity in the vehicle.
The impact of your down payment and trade-in
Increasing your down payment or trade-in value reduces the amount you need to finance, which lowers both your monthly payment and total interest paid. Even a modest increase can meaningfully reduce your total cost over a 5 or 6 year loan.
Frequently Asked Questions
What is APR on a car loan?
APR (Annual Percentage Rate) represents the yearly cost of borrowing, including the interest rate and, in some cases, certain fees. A lower APR means less of your monthly payment goes toward interest, so comparing APRs — not just advertised interest rates — is the best way to shop for the cheapest loan.
How does loan term affect total interest paid?
A longer term, such as 72 or 84 months, spreads payments out and lowers your monthly amount, but you'll pay significantly more total interest because the balance takes longer to shrink. A shorter term like 36 or 48 months costs more per month but saves money overall and builds equity faster.
How does my credit score affect my auto loan rate?
Lenders use your credit score to gauge risk — borrowers with excellent credit (720+) typically qualify for the lowest advertised rates, while those with poor or fair credit can pay several percentage points more in APR. Shopping around with multiple lenders, including credit unions, can help you find the best rate for your credit tier.
Should I lease or buy a car?
Leasing usually means lower monthly payments and driving a newer car, but you never build equity and face mileage limits and fees. Buying costs more per month but you own the car outright once the loan is paid off, which is typically cheaper in the long run if you keep vehicles for many years.
Is 0% APR financing actually a good deal?
0% APR offers can be excellent if you qualify, since every dollar of your payment goes toward principal with no interest cost at all. However, these offers are usually reserved for buyers with excellent credit and often require giving up manufacturer rebates, so compare the total cost against a rebate-plus-loan scenario before deciding.
Should I finance through the dealer or get a loan from my bank first?
Getting pre-approved by your bank or credit union before visiting the dealer gives you a rate benchmark and negotiating leverage, since dealer financing can sometimes beat that rate through manufacturer incentives but can also mark up the rate for profit. Comparing both options side by side is the safest way to ensure you get the lowest true cost.
How much does my trade-in or down payment reduce my payment?
Both your down payment and trade-in value directly reduce the amount you need to finance, which lowers your monthly payment and the total interest charged over the loan. Even a few thousand dollars can meaningfully shrink your payment, especially on longer loan terms where interest compounds over more months.
How much car can I actually afford?
A common guideline is keeping your total monthly vehicle costs — payment, insurance, and fuel — under about 15-20% of your take-home pay. Use the calculator above with different vehicle prices, down payments, and loan terms to find a payment that comfortably fits your budget.