Auto Loan Calculator
A car is often your second-largest purchase after a home, and the way you finance it has a large effect on both your monthly budget and your total cost. This calculator estimates your monthly auto loan payment after subtracting your down payment and trade-in from the vehicle price, and it shows the total interest you'll pay over the loan term. Enter the vehicle price, your down payment, your trade-in value, the APR, and the loan term in years, and the calculator returns the monthly payment, the total interest, and the total cost. A few rules of thumb protect you from the most common auto-loan mistakes: keep the loan to five years or fewer, put at least 20% down on a new car (10% on used), and don't let the loan term stretch so long that you owe more than the car is worth — a situation called being 'upside down,' which is common with 72- and 84-month loans because cars depreciate faster than the long loan is paid down. Longer terms lower the monthly payment but raise total interest and increase the upside-down risk, so the calculator helps you see the trade-off and choose a term that keeps the payment affordable without extending the payoff dangerously long. For borrowers with good credit, new-car APRs average about 5% to 7%, while used-car rates are higher; rates rise sharply for lower credit scores, so improving your credit before financing can save meaningful money over the loan's life. Get pre-approved from a bank or credit union before visiting the dealer so you have a rate to compare against the dealer's financing offer, which can include markup on the rate. A larger down payment and trade-in reduce the amount financed, lowering your payment, your total interest, and the risk of being upside down the moment you drive off the lot.
Auto Loan Calculator
Estimate your monthly car payment, accounting for down payment and trade-in.
Monthly payment
$435
Loan amount $22,000
Total interest
$4,075
Total paid
$26,075
A larger down payment and trade-in reduce your loan — and the interest you pay. Keep auto terms to 5 years or fewer to avoid being upside down on the loan.
How to Use This Calculator
- 1Enter the vehicle price.
- 2Enter your down payment.
- 3Enter your trade-in value.
- 4Enter the APR and loan term in years.
- 5Read your monthly payment and total interest.
Why It Helps
- ✓Shows the true cost of financing a car.
- ✓Accounts for down payment and trade-in.
- ✓Helps you compare loan terms and rates.
- ✓Encourages larger down payments to cut interest.
About This Calculator
A car is often your second-largest purchase after a home, and the way you finance it has a large effect on both your monthly budget and your total cost. This calculator estimates your monthly auto loan payment after subtracting your down payment and trade-in from the vehicle price, and it shows the total interest you'll pay over the loan term. Enter the vehicle price, your down payment, your trade-in value, the APR, and the loan term in years, and the calculator returns the monthly payment, the total interest, and the total cost. A few rules of thumb protect you from the most common auto-loan mistakes: keep the loan to five years or fewer, put at least 20% down on a new car (10% on used), and don't let the loan term stretch so long that you owe more than the car is worth — a situation called being 'upside down,' which is common with 72- and 84-month loans because cars depreciate faster than the long loan is paid down. Longer terms lower the monthly payment but raise total interest and increase the upside-down risk, so the calculator helps you see the trade-off and choose a term that keeps the payment affordable without extending the payoff dangerously long. For borrowers with good credit, new-car APRs average about 5% to 7%, while used-car rates are higher; rates rise sharply for lower credit scores, so improving your credit before financing can save meaningful money over the loan's life. Get pre-approved from a bank or credit union before visiting the dealer so you have a rate to compare against the dealer's financing offer, which can include markup on the rate. A larger down payment and trade-in reduce the amount financed, lowering your payment, your total interest, and the risk of being upside down the moment you drive off the lot.
Disclaimer: This calculator provides estimates for educational purposes only and does not constitute financial, tax, or investment advice. Results depend on assumptions that may not reflect your actual situation.
Frequently Asked Questions
How much should I put down on a car?
Aim for at least 20% down on a new car and 10% on used. A larger down payment reduces your loan, your monthly payment, and total interest.
How long should my auto loan be?
Keep it to 60 months or fewer. Longer terms lower the payment but raise total interest and increase the risk of being upside down on the loan.
What is a good auto loan APR?
For borrowers with good credit, new-car APRs average 5-7%. Used-car rates are higher. Rates rise sharply for lower credit scores.
Should I finance through the dealer or a bank?
Compare both. Get pre-approved from a bank or credit union, then see if the dealer can beat the rate. Dealer financing can include markups.
Does my trade-in reduce the loan amount?
Yes. The trade-in value plus your down payment reduces the amount you need to finance, lowering your payment and interest.
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Written by
James MitchellSenior Financial Analyst & Personal Finance Expert
Certified Financial Planner (CFP) • MBA in Finance, University of Chicago Booth School of Business