Auto Loan Calculator
Estimate your monthly car payment and total interest cost.
This tool provides estimates for informational purposes only and is not a loan offer or financial advice. Actual loan terms depend on your lender and creditworthiness.
| Loan amount | Monthly payment |
|---|---|
| $15,000 | $290/mo |
| $20,000 | $387/mo |
| $25,000 | $483/mo |
| $30,000 | $580/mo |
| $35,000 | $677/mo |
| $40,000 | $773/mo |
Frequently asked questions
How is the monthly payment calculated?
We use the standard loan amortization formula, based on your loan amount (vehicle price minus down payment and trade-in), interest rate, and loan term, assuming equal monthly payments over the full term.
Does trade-in value reduce my loan amount?
Yes — your trade-in value is subtracted from the vehicle price along with your down payment, reducing the amount you actually need to finance.
What interest rate should I use?
Use the APR (annual percentage rate) offered by your lender or dealership. Rates vary based on credit score, loan term, and lender, so it's worth comparing offers.
Does this include taxes, fees, or insurance?
No — this calculator estimates principal and interest only. Sales tax, registration fees, and insurance are typically additional costs not reflected here.
What's the monthly payment on a $30,000 car loan?
At 6% APR over 60 months, a $30,000 auto loan comes to about $580/month in principal and interest (see chart above). Your own rate and term will change this — use the calculator to plug in your numbers.
How much is a car payment on a $20,000 loan?
At 6% APR over 60 months, a $20,000 auto loan works out to about $387/month. Shorter terms mean higher payments but less total interest; longer terms lower the payment but cost more overall.
Does a longer loan term always cost more in interest?
Yes — stretching payments over more months lowers your monthly payment but increases the total interest you pay, since you're borrowing the same amount for longer at the same rate.
How much interest will I pay on a car loan?
It depends on the amount, rate and term. For example, borrowing $27,000 at 6% APR over 60 months costs about $4,300 in interest, while the same loan over 84 months costs about $6,100. The calculator above shows the interest for your own figures.
Is a 72-month car loan a bad idea?
Not always, but it costs more. A longer term lowers the monthly payment, yet you pay interest for more months and may owe more than the car is worth for longer. Compare the total interest at different terms before choosing.
Should I put more money down on a car?
A larger down payment reduces the amount you borrow and the interest you pay, and it can help you avoid owing more than the car is worth. Weigh it against keeping enough savings for emergencies.
About this tool
This calculator estimates your monthly auto loan payment using the standard loan amortization formula. Enter the vehicle price, down payment, trade-in value, interest rate, and loan term to see your estimated payment and total interest cost.
Worked example
Say the car costs $32,000, you put $3,000 down and your trade-in is worth $2,000. The amount you need to finance is $32,000 − $3,000 − $2,000 = $27,000. At 6% APR over 60 months, the monthly rate is 0.06 ÷ 12 = 0.5% and the payment works out to $521.99 a month.
Over five years that comes to $31,319.14 paid in total, so the interest cost is $4,319.14, or about 16% on top of what you borrowed. In the first month, $135.00 of the payment is interest and the rest goes toward the balance, which is why early payments barely reduce what you owe.
How the loan term changes the cost
A longer term lowers the monthly payment but means more months of interest. Here is the same $27,000 loan at 6% APR over different terms:
| Term | Monthly payment | Total interest | Total paid |
|---|---|---|---|
| 36 months | $821.39 | $2,570 | $29,570 |
| 48 months | $634.10 | $3,437 | $30,437 |
| 60 months | $521.99 | $4,319 | $31,319 |
| 72 months | $447.47 | $5,218 | $32,218 |
| 84 months | $394.43 | $6,132 | $33,132 |
Stretching from 36 to 84 months cuts the payment by roughly half but more than doubles the interest. A very long term can also leave you owing more than the car is worth for longer, since vehicles lose value quickly.
How the interest rate changes your payment
| APR | Monthly payment | Total interest |
|---|---|---|
| 4% | $497.25 | $2,835 |
| 6% | $521.99 | $4,319 |
| 8% | $547.46 | $5,848 |
| 10% | $573.67 | $7,420 |
| 12% | $600.60 | $9,036 |
Rates depend on your credit profile, the lender, the age of the car and the term, so it is worth getting quotes from a few lenders, including your bank or credit union, before you sign at the dealership.
What a larger down payment does
A bigger down payment reduces the amount you borrow, which lowers both the payment and the total interest. Here is the effect on a $32,000 car with a $2,000 trade-in, at 6% APR over 60 months:
| Down payment | Loan amount | Monthly payment | Total interest |
|---|---|---|---|
| $0 | $30,000 | $579.98 | $4,799 |
| $3,000 | $27,000 | $521.99 | $4,319 |
| $6,400 | $23,600 | $456.25 | $3,775 |
| $9,600 | $20,400 | $394.39 | $3,263 |
Costs this calculator does not include
- Sales tax, registration and dealer fees. These are often added to the price or rolled into the loan, which raises the amount you borrow.
- Insurance. A financed car usually needs fuller cover than a paid-off one, and the cost varies a lot by driver and vehicle.
- Fuel, maintenance and repairs. These are ongoing costs on top of the payment.
- Optional add-ons. Extended warranties and similar products can be added to a loan, so check what is included in the price you are given.
As a rough check, many people try to keep the total monthly cost of owning a car to a manageable share of their income. This tool is an estimate only and is not financial advice, so confirm the exact figures with your lender.