Car Loan Calculator
Enter the car price, down payment, trade-in, sales tax and APR to see your monthly payment, the total interest and when the loan will be paid off, with a month-by-month schedule.
How the amount financed is worked out
Compare loan terms
| Term | Monthly | Total interest | Total of payments | Payoff |
|---|
Amortization schedule
Yearly summary rows. Tap a year to see its monthly payments.
| Period | Payment | Principal | Interest | Balance |
|---|
Estimates only, not financial advice. Your lender's figures may differ because of rounding, payment dates, dealer add-ons and local tax rules.
How to use the Car Loan Calculator
- Enter the vehicle price and pick your currency symbol.
- Add your down payment as an amount or a percentage, plus any trade-in value and what you still owe on it.
- Set sales tax and fees, and choose whether fees are rolled into the loan.
- Enter the APR and pick a term from 36 to 84 months, or type your own.
- Press Calculate to see the monthly payment, total interest and payoff date, then compare terms or export the schedule as CSV.
Car loan formula with a worked example
The monthly payment on an auto loan is M = P × r ÷ (1 − (1 + r)−n), where P is the amount financed, r is the monthly rate (APR ÷ 12 ÷ 100) and n is the number of monthly payments.
Example: a $28,000 car with $3,000 down and 7% sales tax on the price, 0 fees, at 6% APR for 60 months. Tax is 28,000 × 0.07 = $1,960, so the amount financed is 28,000 + 1,960 − 3,000 = $26,960. The monthly rate is 0.06 ÷ 12 = 0.005, so M = 26,960 × 0.005 ÷ (1 − 1.005−60) = $521.21. Over 60 months you pay $31,272.60 in total, of which $4,312.60 is interest.
Monthly payment per $10,000 borrowed
| APR | 36 months | 48 months | 60 months | 72 months | 84 months |
|---|---|---|---|---|---|
| 3% | $290.81 | $221.34 | $179.69 | $151.94 | $132.13 |
| 5% | $299.71 | $230.29 | $188.71 | $161.05 | $141.34 |
| 7% | $308.77 | $239.46 | $198.01 | $170.49 | $150.93 |
| 9% | $318.00 | $248.85 | $207.58 | $180.26 | $160.89 |
| 12% | $332.14 | $263.34 | $222.44 | $195.50 | $176.53 |
Multiply by the amount you plan to borrow in tens of thousands. For $25,000 at 5% over 60 months: 2.5 × $188.71 ≈ $471.78 a month.
Ways to lower the total cost of a car loan
- Put more down. A 20% down payment on a new car (10% on used) keeps you from owing more than the car is worth.
- Choose the shortest term you can afford. Going from 72 to 48 months often saves thousands in interest.
- Shop the rate before the car. A pre-approval from a bank or credit union gives you a rate to compare with dealer financing.
- Pay fees upfront instead of rolling them into the loan, so you don't pay interest on them.
- Watch for negative equity. Rolling an old balance into a new loan makes the new loan bigger and longer.
The figures on this page are estimates only and are not financial advice.
Frequently asked questions
How is a car loan payment calculated?
Car loans use the standard amortization formula: payment = P × r ÷ (1 − (1 + r)^−n), where P is the amount financed, r is the APR divided by 12 and n is the number of months. For example, $25,000 at 6% APR over 60 months is $483.32 a month.
What is the amount financed?
It is the vehicle price plus sales tax and any fees you roll into the loan, minus your down payment and trade-in equity. If you owe more on your trade-in than it is worth, that negative equity is added to the new loan.
Does a trade-in reduce sales tax?
In most US states sales tax is charged on the price minus the trade-in value, which can save hundreds of dollars. A few states tax the full price. Untick the trade-in tax option if that applies to you.
Is a 72 or 84 month car loan a good idea?
Longer terms lower the monthly payment but you pay much more interest, and because cars lose value quickly you may owe more than the car is worth for years. The compare-terms table shows the trade-off for your numbers.
What is a good APR for a car loan?
It depends on your credit score, whether the car is new or used, the term and current market rates. Borrowers with excellent credit get the lowest rates, while used-car and subprime loans can cost much more. Get quotes from banks or credit unions before visiting the dealer.
Why might my lender's payment differ slightly?
Lenders may count interest daily, set a different first payment date, round differently or include add-ons such as gap insurance or extended warranties. These results are estimates only and are not financial advice.