Auto Loan Calculator

Estimate your monthly car payment from the price, your down payment, the interest rate and the loan term — and see the amount you are really financing.

Calculator

Car price ($)Down payment ($)Annual rate (%)Term (years)

What this auto loan calculator does

Car dealers love to negotiate on the monthly payment because it hides the real cost of the deal. This auto loan calculator works the other way: you enter the car price, your down payment, the interest rate and the term, and it shows the monthly payment along with the exact amount you are financing. That makes it easy to see how the down payment, rate and term each push your payment up or down — and to walk into the dealership knowing your numbers.

The amount financed is simply the price minus your down payment (and minus any trade-in value you put toward the car). Sales tax, registration, title and dealer fees are not included here, so add your state's costs on top — many buyers roll these into the loan, which raises the financed amount.

How to use it

Car price — the agreed sale price of the vehicle.
Down payment — cash plus any trade-in you are putting down up front.
Annual rate — the APR offered by the dealer, bank or credit union.
Term — the loan length in years; common terms are 3, 5 or 6 years.
Calculate — read your monthly payment and the amount financed.

The formula

Amount financed = price − down payment.
Then M = P · r · (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), with P the amount financed, r the monthly rate and n the number of monthly payments.

It is the standard amortization formula applied to the financed balance. A bigger down payment lowers P directly, so it cuts both the monthly payment and the total interest. A longer term lowers the monthly payment but adds interest and increases the risk of being "upside down" — owing more than the car is worth — because cars depreciate fast.

Worked examples

Example 1. A $30,000 car with $5,000 down, financed at 7% over 5 years. You finance $25,000, and the monthly payment is about $495. Total interest is roughly $4,700.

Example 2 — Bigger down payment. Same car at 7% over 5 years but with $10,000 down. You finance $20,000 and pay about $396 a month — roughly $100 less, and you save about $940 in interest.

Example 3 — Longer term. The $25,000 financed at 7% over 7 years drops the payment to about $377, but total interest jumps to about $6,700 — and you may owe more than the car's value for much of the loan.

How down payment and term change the payment

Financed	Term	Rate	Monthly	Total interest
$25,000	3 yr	7%	$772	$2,789
$25,000	5 yr	7%	$495	$4,702
$25,000	6 yr	7%	$426	$5,690
$20,000	5 yr	7%	$396	$3,762
$25,000	5 yr	4%	$460	$2,625

Excludes sales tax, registration and dealer fees. Figures rounded.

When to use it

Before visiting a dealer, so you can negotiate on price rather than monthly payment.
Comparing dealer finance vs your bank or credit union by entering each APR.
Deciding how much to put down to hit a target monthly payment.
Choosing a term that balances an affordable payment against total interest and depreciation risk.

Tips and common mistakes

Negotiate the price, not the payment. A "lower payment" can simply mean a longer, costlier loan. Put down at least enough to avoid going underwater — 10–20% down keeps you closer to the car's resale value. Add taxes and fees to your real budget; in many states these add 8–10% to the price. And avoid terms longer than the car will reliably last: a 7-year loan on a car you plan to keep for five years can leave you paying for a vehicle you no longer own.

Frequently asked questions

Does this include sales tax and fees?

No. It calculates the loan on the amount financed (price minus down payment). Sales tax, registration, title and dealer fees are extra and vary by state. Add them to your budget, or to the financed amount if you roll them into the loan.

How much should I put down on a car?

A down payment of 10–20% is a common guideline. A larger down payment lowers your monthly payment and total interest, and reduces the chance of owing more than the car is worth as it depreciates.

Is a longer car loan a good idea?

A longer term lowers the monthly payment but increases total interest and the risk of being upside down on the loan. Many advisers suggest keeping auto loans to five years or less.

Should I finance through the dealer or my bank?

Compare the APRs. Dealers sometimes offer promotional low rates, but banks and credit unions are often cheaper. Enter each quoted APR here to see the real monthly and interest difference.

What does 'amount financed' mean?

It is the car price minus your down payment and any trade-in value. The loan, monthly payment and interest are all calculated on this figure, not the full sticker price.

Can I include a trade-in?

Yes. Add the trade-in value to your cash down payment and enter the total in the down payment field. The amount financed will drop accordingly.