Auto Loan Calculator
Estimate your monthly car payment and total financing cost. Factor in your down payment, trade-in value, interest rate, and loan term.
How Auto Loan Financing Works
When you finance a vehicle, a lender pays the dealer (or private seller) and you repay the lender in monthly installments over a set term — typically 24 to 84 months. The loan amount is the vehicle price minus your down payment and any trade-in credit.
Interest is calculated on the outstanding balance each month, so the earlier you pay off the loan, the less interest you pay in total.
Monthly Payment vs. Total Cost
Many buyers focus only on the monthly payment, but the total cost of the loan matters just as much. Stretching a loan to 84 months to get a lower payment can cost thousands more in interest over the life of the loan.
| Term | Monthly Pmt* | Total Interest* |
|---|---|---|
| 36 months | $805 | $989 |
| 48 months | $616 | $1,323 |
| 60 months | $500 | $1,667 |
| 72 months | $424 | $2,009 |
| 84 months | $368 | $2,354 |
*Based on a $27,000 loan at 6.5% APR.
Frequently Asked Questions
What is a good interest rate for an auto loan?
As of 2024–2025, average auto loan rates range from about 5%–8% for new vehicles and 7%–12% for used vehicles, depending on your credit score. Borrowers with excellent credit (720+) typically qualify for the lowest rates. Credit unions often offer rates lower than dealership financing.
Should I put money down on a car?
A larger down payment reduces the amount financed, lowering your monthly payment and total interest paid. A down payment of 10–20% is commonly recommended. It also helps prevent being 'underwater' (owing more than the car is worth) as vehicles depreciate quickly.
How does trade-in value affect my loan?
Your trade-in value is applied as a credit toward the purchase price, reducing the amount you need to finance — similar to a down payment. If you owe money on your trade-in, the difference (positive or negative equity) is factored into your new loan.
Is a longer loan term better?
A longer term (72 or 84 months) lowers your monthly payment but increases total interest paid. A 36- or 48-month loan costs less overall but requires a higher monthly payment. Also, long-term loans risk having you owe more than the car is worth as it depreciates.
What is the total cost of a car loan?
The total cost is the monthly payment multiplied by the number of payments. For example, a $400/month payment over 60 months = $24,000 total paid. Subtracting the amount financed gives you total interest paid.