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Auto Loan Calculator
What will your car payment be? Enter the car price, your down payment and trade-in, the interest rate and the term, and this auto loan calculator works out your monthly car payment and the total interest.
Example filled in: a $30,000 car with $3,000 down and a $2,000 trade-in, at 6.9% interest over 60 months. 6.9% is an example rate, not a live market rate. Change any number below to run your own car loan.
How to use this auto loan calculator
- Enter the car price.
- Enter your down payment and trade-in value — both come off the amount you borrow.
- Enter the annual interest rate and the loan term in months.
- The auto loan calculator shows your monthly car payment, the amount financed, total interest and total paid to the lender.
Formula
Amount financed = car price − down payment − trade-in value. The monthly payment then uses the same amortization formula as any loan: with a monthly rate r (annual rate divided by 12) and n monthly payments, M = P × r(1+r)n / ((1+r)n − 1). Total interest is the monthly payment times the number of months, minus the amount financed.
Worked example — $30,000 car at 6.9% over 60 months
A $30,000 car with $3,000 down and a $2,000 trade-in leaves $25,000 to finance. At 6.9% interest (an example rate, not a live market rate) over 60 months, the monthly car payment is $493.85. Total paid to the lender is $29,631.08, so the total interest is $4,631.08. The $3,000 down payment and $2,000 trade-in are paid separately, not to the lender. Check it above — the auto loan calculator gives the same answer.
Frequently asked questions
How much interest will I pay on a $30,000 car loan?
It depends on your down payment, trade-in, rate and term. With $3,000 down and a $2,000 trade-in, you finance $25,000, and at 6.9% interest (an example rate) over 60 months the total interest is $4,631.08, with a $493.85 monthly payment. With no down payment and no trade-in, the same $30,000 at 6.9% over 60 months costs $5,557.29 in interest and $592.62 a month.
How much is the monthly payment on a $25,000 car loan?
At 6.9% interest (an example rate) over 60 months, the monthly payment on $25,000 financed is $493.85. Over 48 months at the same rate it would be higher each month but cost less interest overall. Enter your own numbers above to see your payment.
Does a bigger down payment lower my car payment?
Yes. Every dollar of down payment or trade-in is a dollar you do not borrow, so it cuts both the monthly payment and the total interest. On the example above, the $3,000 down payment and $2,000 trade-in together cut the monthly payment from $592.62 to $493.85.
What is a good interest rate for a car loan?
It depends on your credit score, the lender, whether the car is new or used, and rates change often. This site does not publish live rates. Use the rate your lender quotes you in the calculator, and compare the monthly payment and total interest across lenders.
Should I take a longer car loan term?
A longer term lowers the monthly payment but raises the total interest, and you may owe more than the car is worth for longer. A 60-month term is the most common middle ground; compare 48 and 60 months in the calculator above before you decide.
Sources and method. Standard loan amortization formula: monthly rate = annual rate / 12; monthly payment = P × r(1+r)n / ((1+r)n − 1). Simple interest I = P × r × t; compound interest A = P(1 + r/n)nt. Rates in the examples on this page are examples only, not live market rates. Results are estimates, not financial advice.
Estimate, not financial advice. This calculator uses the numbers you enter and the standard amortization formula. Your lender’s figures, fees and payoff rules can differ. Check the loan agreement and talk to a financial professional before you borrow.