Auto Loan Calculator
Calculate your monthly car payment, total interest, and total cost for any auto loan. Enter vehicle price, down payment, rate, and term.
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Monthly Payment
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Loan Amount —
Total Interest —
Total Cost —
How to Use This Calculator
- Enter the Vehicle Price — the agreed purchase price.
- Enter your Down Payment — more down means less interest paid.
- Enter the Interest Rate (APR) — get pre-approved to know your rate.
- Select the Loan Term in months — 60 months is the most common choice.
- See your Monthly Payment and Total Interest instantly.
Formula
Monthly Auto Payment:
M = P × [r(1+r)^n] / [(1+r)^n − 1]
- P = Loan amount (Vehicle Price − Down Payment)
- r = Monthly rate (APR ÷ 12)
- n = Loan term in months
Example
Example: $35,000 vehicle, $5,000 down, 6.5% APR, 60-month term.
- Loan Amount: $30,000
- Monthly Payment: $587.18
- Total Interest: $5,230.80
- Total Cost: $35,230.80
Frequently Asked Questions
- As of 2024–2025, average auto loan rates are 5–8% for new cars and 7–12% for used cars for borrowers with good credit. Credit unions often offer lower rates than dealerships.
- A down payment of 10–20% is generally recommended. For new cars, 20% helps avoid being "underwater" on the loan (owing more than the car is worth) due to immediate depreciation.
- Shorter terms (36–48 months) mean higher payments but less interest paid overall. Longer terms (72–84 months) lower monthly payments but significantly increase total cost and risk of negative equity.
- Financial advisors suggest keeping total car costs (payment + insurance + fuel) below 15–20% of monthly take-home pay. On a $5,000/month income, that is a maximum of $750–$1,000 for all auto expenses.
- Often yes. Getting pre-approved by your bank or credit union before visiting a dealership gives you a benchmark rate. Dealer financing can sometimes beat bank rates through manufacturer incentives, but compare carefully.