Auto Loan Calculator
Monthly payment and total interest for a car loan.
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Fill in the loan details and press Calculate — the monthly payment, total interest and schedule will render right on this page, with nothing sent to any server.
How to use
An auto loan spreads the price of a car over monthly payments plus interest. This calculator takes the price, your down payment, the rate and the term, then returns the monthly payment and the lifetime interest. Use it before visiting a dealership so you know what a quoted payment really means.
How to use
- Enter the out-the-door price you are considering (sticker plus fees if you plan to finance them).
- Add the cash down payment you can put in today.
- Set the APR the lender quoted and the term in years (3, 4, 5 or 6 are the common car terms).
- Press Calculate to see the payment and the total interest over the whole term.
Example
Say the price is $28,000, you put $4,000 down and the lender quotes 5.9% for 5 years. The loan is $24,000. The monthly payment works out to about $463 and the total interest over 60 months is roughly $3,780. If you stretched the same loan to 6 years, the payment would drop to about $396 but the interest would rise past $4,500 — the classic trade-off.
Formula
The monthly payment uses the standard amortizing formula PMT = P·r·(1+r)^n / ((1+r)^n − 1), where r is the monthly rate (APR/12) and n is the number of months (term × 12). Every payment covers that month's interest first, then the rest goes to principal.
New car rates
New cars usually qualify for promotional rates around 0-5% and a 6-year term is common. The trade-off of a longer new-car loan is negative equity: early on you can owe more than the car is worth, so a bigger down payment helps there.
Used car rates
Used cars typically carry 6-12% because the collateral is older and worth less. Lenders also cap used-car terms by age, so a 6-year loan on a 6-year-old car usually is not available — the math here adapts to whatever rate and term you are quoted.
How down payment changes the picture
Every dollar you put down is a dollar you do not borrow. A 10-20% down payment is typical. On a $28,000 car at 5.9% for 5 years, $4,000 down gives a $463 payment; raising the down payment to $8,000 drops the payment to about $386 and cuts total interest by roughly $640. If you put nothing down you finance the full price and may owe more than the car is worth early in the loan.
Quick budget check
If you only need the monthly number to check against your budget, leave the term at 5 years and adjust the price until the payment fits. Lenders often suggest keeping total car payments under 10-15% of take-home pay.
FAQ
What APR should I expect?
New-car rates often run 5-8% and used-car rates 6-12%; your credit score drives the exact number. Dealership promos can go lower on specific models.
Should I put more down?
A bigger down payment lowers the loan, the payment and the interest you pay. Ten to twenty percent is the common range.
Is a longer term cheaper?
It lowers the monthly payment but raises total interest. Stretching 60 months to 72 months adds hundreds of dollars of interest.
What is the difference from the used car case?
Used cars carry higher rates and shorter practical terms. This page covers both with the same math; see the sections above for rate ranges.
How fast can I check a payment?
The quick check above answers the budget question in seconds without the full amortization detail.
Reviewed by the LoanMath editorial team