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Auto Loan Calculator - Car Payment Calculator

Free auto loan calculator to estimate monthly car payments, total interest, and loan costs. Compare different loan terms and down payments.

Auto Loan Calculator

Calculate your monthly car payment and total loan cost

$

The purchase price of the vehicle.

$

Cash you'll pay upfront. Higher = lower monthly payment.

$

Value of your current vehicle if trading in.

%

Annual interest rate from the lender.

Length of the loan in months.

%

State/local sales tax on vehicle purchase.

Loan Summary

Enter your values to see results

and click the "Calculate" button

What is an Auto Loan?

An auto loan is a secured loan used to purchase a vehicle, with the car serving as collateral. The lender provides funds to buy the car, and you repay with interest over a set term (typically 24-84 months). Auto loans usually have lower interest rates than unsecured personal loans because the vehicle secures the debt.

How to Use This Calculator

  1. Enter the vehicle's purchase price
  2. Add your down payment and trade-in value (if any)
  3. Enter the interest rate (APR) from the lender
  4. Select your preferred loan term
  5. Add sales tax rate if applicable
  6. Click Calculate to see your payment

Auto Loan Formula

M = P × [r(1+r)^n] / [(1+r)^n - 1]

M = Monthly payment, P = Principal (loan amount), r = Monthly interest rate, n = Number of payments. This is the standard amortizing loan formula.

Frequently Asked Questions

What's a good interest rate for an auto loan?
As of 2026, good rates are 4-6% for excellent credit (750+), 6-9% for good credit (700-749), 9-14% for fair credit (650-699), and 14%+ for poor credit. New cars typically get lower rates than used cars.
Should I choose a longer or shorter loan term?
Shorter terms (36-48 months) mean higher payments but less total interest. Longer terms (60-84 months) mean lower payments but significantly more interest. Avoid going longer than 60 months if possible.
How much should I put down?
Aim for at least 20% down to avoid being 'underwater' (owing more than the car's worth). More down payment = lower monthly payment and less interest paid.
Is it better to finance through a dealer or bank?
Compare both! Dealers may offer promotional rates (0% APR), but banks/credit unions often have competitive rates. Get pre-approved before visiting the dealer for negotiating power.
What is GAP insurance?
GAP (Guaranteed Asset Protection) covers the difference between what you owe and what insurance pays if your car is totaled. Important if you have a small down payment or long loan term.
Can I pay off my auto loan early?
Most auto loans allow early payoff without penalty. Check your loan terms. Paying extra toward principal saves interest and shortens the loan.

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