Auto Loan Calculator
An auto loan calculator estimates your monthly car payment and the total cost of financing a vehicle. The calculator above does this in seconds. Enter the vehicle price, your down payment, the interest rate (APR), and the loan term to see your numbers. For example, a $35,000 car with $5,000 down at 7.5% APR over 60 months gives a $601.14 monthly payment.
Auto Loan calculators
How it works
Your monthly car payment is set by three things: the loan amount, the APR, and the loan term. The loan amount is the price minus your down payment and trade-in. In the example above, $35,000 minus $5,000 down leaves a $30,000 loan.
Each payment is split between interest and principal through a process called amortization. Early on, more of your money goes to interest. In month one, the $601.14 payment splits into $187.50 of interest and $413.64 of principal. Over the full 60 months, you pay $6,068 in interest, for a total of $36,068.
To see the full month-by-month breakdown, use the auto loan amortization calculator. To see how a higher payment cuts your interest, try the auto loan extra payment calculator.
Frequently asked questions
What is a good interest rate on an auto loan in 2026?
A good rate depends on your credit and whether the car is new or used. In mid-2025, the average new-car APR was about 6.8%, and the average used-car APR was about 11.5%, according to Experian. Borrowers with strong credit often qualify for rates below these averages. Always compare offers from a bank or credit union before you visit the dealer.
How does this auto loan calculator estimate my payment?
The auto loan calculator uses your loan amount, APR, and term to compute a fixed monthly payment. It applies a standard amortization formula, the same math lenders use. The result shows your principal and interest payment. It does not include taxes, registration, or insurance, so budget extra for those costs.
Should I choose a longer loan term to lower my payment?
A longer term lowers your monthly payment but raises the total interest you pay. Stretching a loan to 72 or 84 months also raises the risk of owing more than the car is worth. This is called being underwater. A shorter term costs more each month but saves money overall. As a rule, pick the shortest term you can comfortably afford.
What is a common dealer financing trap to avoid?
Watch out for dealer interest rate markup. When a dealer arranges your loan, they can add a markup to the lender's rate and keep the difference. This can cost you hundreds or thousands over the loan. Get a pre-approved rate from your own bank or credit union first. The CFPB confirms your auto loan terms are negotiable, so use that outside offer as leverage.
How much does a bigger down payment help?
A bigger down payment lowers your loan amount, which lowers both your payment and your total interest. It also reduces the risk of going underwater on the loan. Many buyers aim for at least 20% down on a new car and 10% on a used car. Even a small increase in your down payment can save you money over the life of the loan.
Can I save money by paying off my car loan early?
Yes, paying early reduces the total interest you pay, since interest is charged on your remaining balance. Even small extra payments toward principal can shorten your loan. First, confirm your lender has no prepayment penalty. To run the numbers, use the pay off car loan early calculator, the auto loan payoff calculator, or the auto loan interest calculator.