Auto Loan Calculator

An auto loan calculator estimates the monthly payment on a car loan based on the vehicle price, your down payment, any trade-in value, the interest rate, and the loan term in months. It uses the same fixed-rate amortization formula banks use, so the number you see should match what a lender quotes you for principal and interest.

Cars are depreciating assets — unlike a house, a vehicle loses value the moment you drive it off the lot, typically 20–30% in year one and roughly 50–60% over five years. That makes the loan structure especially important: a long term and a small down payment can leave you owing more than the car is worth (called being "upside-down") for most of the loan's life.

Suppose you're buying a $35,000 car with $5,000 down and a 60-month loan at 6.5% APR:

• Amount financed: $30,000
• Monthly rate: 6.5% ÷ 12 = 0.005417
• Number of payments: 60
• Monthly payment: $586.94
• Total interest paid: $5,216

Stretch the same loan to 72 months and the payment drops to about $504/month — but total interest jumps to roughly $6,289. You save $83/month in cash flow and pay an extra $1,073 for the privilege.

• Before stepping onto a dealer lot — know the monthly payment that fits your budget so you can't be talked into a more expensive car.
• Comparing financing offers — plug in each lender's rate and term to see real cost differences.
• Deciding new vs. used — used cars often have higher rates but lower prices; the calculator shows the net effect.
• Down payment what-ifs — see how an extra $2,000 down trims the payment and total interest.
• Refinance check — if your credit improved since you bought, compare a new rate to your current loan's remaining term.

• Focusing only on monthly payment. Dealers love payment-shoppers because they can stretch the term to hit any number you name. Always look at total interest.
• Rolling negative equity into the new loan. If you owe more than your trade-in is worth, financing the difference puts you instantly underwater on the new car.
• Ignoring sales tax and fees. Add 8–12% on top of the sticker price for tax, title, registration, and doc fees in most states.
• Skipping the pre-approval. Walking in without a competing offer means accepting whatever rate the dealer's F&I office picks.
• Choosing 84 months for a small payment drop. The extra two years of interest rarely justifies the savings, and you'll likely want a new car before the loan is paid off.