Auto Loan Calculator

Yes. An auto loan calculator and a car loan payment calculator solve the same problem: your monthly payment from a price, a down payment, an APR, and a term. Enter those four numbers in the calculator above and it returns your payment instantly, plus the full amortization schedule most bare payment calculators skip.

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. The strongest credit profiles sometimes see a manufacturer's 0% APR offer instead of a standard-rate loan, which works differently and isn't automatically the better deal — see our 0% APR car loan guide for when a cash rebate wins instead.

Yes. Enter a used car's price, your down payment, and its APR the same way you would for a new one, since the calculator runs the identical amortization math either way. The one thing to change is the rate you enter. Experian's mid-2025 data put the average used-car APR at 11.5%, well above the 6.8% average for new cars, because used vehicles carry more lending risk. Quote your own used-car rate from a bank or credit union rather than assuming the new-car average applies.

Auto loan rates track the Federal Reserve's federal funds rate, the benchmark most lenders price their own rates against. Experian's mid-2025 data put the average new-car APR near 6.8% and the average used-car APR near 11.5%. Those averages shift a little each time the Fed moves its target rate. Your own quote still depends far more on your credit score and your lender than on that general trend. Get a current rate quote from your bank or credit union, then plug it into the calculator above to see your exact payment — our roundup of the best auto loan calculators by bank and credit union is a fast way to check several at once.

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.

Car loan rates are quoted as an annual percentage, called the APR, even though interest is calculated and charged against your balance every month. The APR includes the interest rate plus any lender fees rolled into the loan, per the CFPB, so it's usually the slightly higher number on your paperwork. Nearly every auto loan carries a fixed rate. The APR you sign for stays the same for the full term, unlike a variable-rate loan that moves up or down with the market. That fixed rate is why the calculator above returns one stable monthly payment instead of a range.

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. Our guide on how long a car loan should be walks through the exact interest cost at each common term length.

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 — see our roundup of bank and credit union auto loan calculators to check several before you visit the dealer. The CFPB confirms your auto loan terms are negotiable, so use that outside offer as leverage.

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.

Yes for your trade-in. Enter its value and any amount you still owe in the calculator above, and it nets the two against your vehicle price the same way a dealer would. Sales tax and title fees are left out of the total, since they vary too much by state, county, and dealer to build into one number. Add your own state's sales tax rate to the vehicle price before you enter it, and the result comes close to your true out-the-door price. That's also why a calculator built for one specific state wouldn't be any more accurate than this one. The trade-in and tax math is identical everywhere. Only the tax rate itself changes, and you're the one who already knows your own rate.

An auto loan is a reasonable way to buy a car you can't pay cash for. It works in your favor when the payment fits your budget and the rate isn't inflated by a dealer markup. Financing also keeps your cash free for emergencies instead of tied up in one asset that loses value the moment you drive it home. The loan becomes a bad idea when the term stretches past 60 months just to chase a lower payment. That longer term raises both your total interest and your odds of owing more than the car is worth. Run your own numbers through the calculator above before you decide, and weigh that payment against the rest of your monthly budget. If a private-party purchase or an older vehicle makes a standard auto loan hard to get, a personal loan is the usual fallback — see our personal loan vs auto loan comparison for the real cost gap between the two.

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.

At 7.5% APR over 60 months with no down payment, a $50,000 car loan costs $1,001.90 a month. Enter $50,000 in the calculator above to see this instantly. Over the full 60 months you would pay $10,113.85 in interest, bringing the total of payments to $60,113.85. A larger down payment or a shorter term both lower that interest cost — try the auto loan interest calculator to compare terms side by side.

At 7.5% APR over 60 months with no down payment, a $27,000 car loan costs $541.02 a month. Enter $27,000 in the calculator above to check this against your own rate and term. Total interest over the 60 months is $5,461.48, for a total of payments of $32,461.48. If you already have a loan this size and want to see how extra payments would shrink that interest, use the auto loan extra payment calculator.

Gap insurance covers the difference between what you still owe on your loan and what your insurer pays out if the car is totaled or stolen, since a car's value drops faster than a loan balance in the first few years. It matters most with a small down payment, a long loan term, or a new car that depreciates quickly right after purchase. Dealers often sell it at signing, but an independent insurer or credit union usually offers the same coverage for less.

Your lender can repossess the car once you default, usually after missing multiple payments, because the vehicle itself is collateral for the loan. If the lender then sells the repossessed car for less than you still owe, you can still be responsible for that remaining balance, called a deficiency balance, plus repossession fees. Call your lender before you miss a payment; many offer a hardship deferment or a modified payment plan instead.