Auto Loan Calculator
Calculate monthly car payments, total financing costs, and loan amortization using vehicle purchase price, down payment, trade-in allowance, and interest rate.
Loan Parameters
Embed this Tool on Your Website
Copy this code snippet to add the Auto Loan Calculator to your blog or website for free. It adjusts dynamically to mobile and desktop screens.
How to Use Auto Loan Calculator
Auto Loan Calculator Formula / How It Works
This calculator uses standard compound interest formulas to determine monthly payments. It translates annual interest rates into monthly portions and amortizes the total financed amount (adjusted for down payments, trade-ins, and selected rolled-in taxes or document fees) across the loan term.
For example, financing a $30,000 vehicle with a $5,000 down payment, $2,000 trade-in, and 5% APR over 60 months (excluding tax and fees) results in a monthly payment of $434.04, with total interest paid of $3,042.30.
Frequently Asked Questions
For borrowers with excellent credit (720+), auto loan rates typically range from 4%–7% for new cars and 6%–9% for used cars (as of 2024). Rates increase significantly for lower credit scores — borrowers with poor credit (below 580) may face rates above 15%.
Longer terms reduce monthly payments but significantly increase total interest paid and the risk of becoming "upside down" on the loan (owing more than the car is worth). A 48–60 month term is generally recommended to balance affordability with total cost.
Enter your local sales tax rate (e.g., 8%) and the calculator adds it to the vehicle purchase price before computing the loan. Sales tax is typically financed along with the vehicle price when not paid upfront.
Financial advisors typically recommend 20% down for a new car and 10% for a used car. A larger down payment reduces your loan amount, monthly payment, and total interest — and lowers the risk of being underwater on the loan.
Many auto loans have no prepayment penalty, but check your loan agreement to be sure. Paying extra toward principal reduces your outstanding balance and total interest paid. Enter extra monthly payments in this calculator to see the impact on your payoff timeline.
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