Car Loan Calculator
An auto loan calculator helps you understand the true cost of financing a vehicle before you walk into a dealership. Enter the vehicle price, your down payment, the loan term, and the interest rate to see your monthly payment and total interest.
How this calculator works
Auto loans use the standard amortizing loan formula: M = P × [r(1+r)^n] / [(1+r)^n − 1], where P is the loan amount (price minus down payment and trade-in), r is the monthly interest rate (APR ÷ 12), and n is the number of monthly payments. The formula is identical to a personal loan; what differs is how lenders determine your rate (based heavily on credit score and loan-to-value ratio).
Formula reference: CFPB: Auto loans
Example
Example: a $28,000 vehicle with a $4,000 down payment leaves a $24,000 loan. At 6.9% APR over 60 months (5 years), the monthly payment is about $473.89 and total interest paid is roughly $4,433.
Frequently asked questions
- Does this include taxes, title, and dealer fees?
- No. This calculator uses the loan principal you enter. In practice, sales tax, registration, title, and dealer documentation fees can add $1,000–$3,000+ to the amount financed. Add those to your vehicle price before calculating to see the full payment.
- Is it better to put more money down?
- Generally yes: a larger down payment reduces the loan amount, which lowers both the monthly payment and total interest. It also reduces the risk of being "underwater" (owing more than the car is worth) early in the loan, since new cars depreciate quickly in the first few years.
This calculator provides estimates for general informational purposes only and does not constitute financial, tax, or legal advice. Always confirm important numbers with a qualified professional or your lender/institution before making a decision.