Free Auto Loan Calculator: Calculate Car Payments & Interest
Use our auto loan calculator to estimate monthly car payments, total interest and full amortization schedules for new and used cars. Get accurate results based on vehicle price, down payment, trade-in value, loan term and interest rate.
Why Use an Auto Loan Calculator Before Car Shopping?
Car buyers who calculate payments before visiting a dealership are better prepared to negotiate and avoid overpaying. Our calculator helps you understand exactly what you can afford, see the total cost of the loan, and compare different financing options side by side.
Key Factors That Affect Your Car Payment
🚗 Vehicle Price
Negotiate the price first before discussing financing. Every $1,000 off reduces your monthly payment by approximately $18–$20.
📉 Interest Rate (APR)
A 1% difference on a $30,000 loan saves over $500 in total interest over 5 years. Always shop rates before visiting a dealer.
📅 Loan Term
Longer terms mean lower monthly payments but more total interest. A 60-month vs 72-month loan can save $1,500 or more.
💵 Down Payment
A larger down payment reduces your loan amount and total interest. Aim for 20% on new cars, 10% on used cars.
How Our Auto Loan Calculator Works
Our calculator uses the standard amortization formula to compute your exact monthly payment:
Monthly Payment = [P × r(1+r)^n] / [(1+r)^n − 1]
Where P = loan amount, r = monthly interest rate (APR ÷ 12), n = total payments
It automatically accounts for sales tax, down payment and trade-in value, then generates a complete month-by-month amortization schedule showing how much of each payment goes to principal vs interest.
Types of Auto Loans
🆕 New Car Loans
Typically lower interest rates (3–6%) with terms from 2 to 7 years. Higher depreciation but better reliability and warranty coverage.
🔄 Used Car Loans
Slightly higher rates (4–9%) but lower purchase price. Better value overall and less depreciation risk in the first year.
♻️ Refinancing
A great option if your credit score has improved since your original loan. Even 1–2% lower can save hundreds over the remaining term.
Car Buying Tips to Save Money
💰 Save for a Down Payment
Aim for 20% on new cars, 10% on used. This reduces your loan amount, monthly payment and total interest paid significantly.
📊 Check Your Credit Score First
Scores above 720 get the best rates. Check your credit report for errors before applying to make sure you qualify for the lowest APR.
🏦 Get Pre-Approved Before Shopping
Secure financing from your bank or credit union before visiting any dealership. This gives you real negotiating power on the financing terms.
🤝 Negotiate Price Before Financing
Always agree on the vehicle price first. Never let the dealer focus the conversation on monthly payments — negotiate the total purchase price.
🚗
Auto Loan Calculator
Enter your vehicle details to calculate your monthly payment
Please enter a valid vehicle price
Please enter a valid down payment
Please enter a valid sales tax rate
Please enter 1–8 years
Please enter a valid interest rate
💳 Payment Breakdown
Monthly Payment (P&I):—
Total Loan Amount:—
Total Vehicle Cost (with tax):—
Total Loan Amount—
Down Payment %—
Total of All Payments—
Total Interest Paid—
📅 Amortization Schedule (First 12 Months)
Month
Payment
Principal
Interest
Balance
In early months, most of your payment goes toward interest.
Financial experts recommend 20% down for new cars and 10% for used cars. A larger down payment reduces your loan amount, lowers your monthly payment and reduces the total interest you pay over the life of the loan.
What is a good interest rate for an auto loan?
A good auto loan rate is typically below 6% for new cars and below 8% for used cars if you have good credit (700+). Rates vary by lender, your credit score and the loan term. Credit unions often offer 0.5–1% lower rates than banks.
Is a 60-month or 72-month auto loan better?
A 60-month loan has higher monthly payments but saves $1,000 or more in total interest compared to a 72-month loan. Longer terms keep you "upside down" on your vehicle longer, meaning you owe more than it is worth. Use the calculator above to compare both options.
Should I finance through a dealer or my bank?
Get pre-approved from your bank or credit union first so you know your rate. Then let the dealer try to beat it. Never discuss monthly payments or financing until you have agreed on the vehicle price — dealers can manipulate monthly payments to hide the true cost.
How is a monthly car payment calculated?
Monthly payment = [P × r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount after down payment and trade-in, r is the monthly interest rate (APR divided by 12), and n is the total number of monthly payments. Our calculator handles this formula automatically.