How to Use This Calculator
Enter the vehicle price, your down payment, any trade-in value, the annual interest rate (APR), and your preferred loan term. The calculator instantly shows your estimated monthly payment, total interest paid, and full amortization schedule — no sign-up required.
Factors That Affect Your Auto Loan
Principal Amount
The principal is the amount you borrow after subtracting your down payment and trade-in value from the vehicle price. A larger down payment reduces the principal, shortens the effective interest burden, and lowers your monthly payment. Aim to put down at least 15–20% of the vehicle's price to avoid being upside-down on the loan.
Interest Rate (APR)
Even a small difference in APR has a significant effect over a multi-year loan. Your rate depends on your credit score, the age of the vehicle (new cars typically get lower rates than used), and the lender. Use this calculator to compare offers: enter each rate and see exactly how much you save over the loan's life.
Loan Term
Loan terms range from 12 to 84 months. A shorter term means higher monthly payments but substantially less total interest. A longer term lowers the monthly payment but you pay interest for more years — and risk owing more than the car is worth. Most financial advisors recommend keeping auto loans at 60 months or fewer.
New vs. Used Vehicle
New vehicles usually carry lower interest rates than used ones, but higher purchase prices. Used vehicles depreciate more slowly, but may come with higher rates and maintenance costs. Run the numbers both ways before deciding — the total cost of ownership matters more than the sticker price.
Understanding Your Results
Deciding on a Loan Amount
Keep an eye on total cost, not just monthly payment. Stretching a loan to 84 months keeps the payment low but dramatically increases total interest paid and puts you at risk of being upside-down — owing more than the car is worth. Set a target principal before you visit the dealer.
Choosing the Best Repayment Term
With your monthly budget in mind, find the shortest term you can comfortably afford. Dropping from 72 to 60 months on a $30,000 loan at 6.5% saves over $1,000 in interest — even though the monthly payment is only ~$80 higher. Run the numbers for each term option using the buttons above.
Comparing Interest Rates
Use this calculator to compare loan offers from different sources. Enter each APR and note the difference in total interest. On a $25,000 loan over 60 months, going from 8% to 6% saves roughly $1,400 — worth shopping around for.
Determining Your Down Payment
Ideally, your down payment should be 15–20% of the vehicle's total cost. A larger down payment reduces the principal and total interest. For a $45,000 vehicle, putting $9,000 down (20%) versus $4,500 (10%) can save several hundred dollars in interest over a 60-month loan.
Amortization Schedule Explained
The amortization schedule shows a row for every payment in your loan. Each row shows the payment date, the total payment amount, how much goes toward the principal (reducing your balance), how much goes toward interest (the lender's fee), and your remaining balance. Early payments are interest-heavy; as the balance shrinks, more of each payment goes to principal.
Frequently Asked Questions
What is a good interest rate for an auto loan?
As of 2026, average auto loan rates range from 5–8% for borrowers with good credit (700+) and 9–14% for those with fair credit. Borrowers with excellent credit (750+) often qualify for promotional rates at or below 5% from credit unions and some manufacturers. The best way to get a competitive rate is to get preapproved by at least three lenders — including a credit union — before visiting a dealership.
How much car loan can I afford?
A common guideline is to keep total vehicle expenses (payment, insurance, fuel, maintenance) under 15–20% of your gross monthly income. For the loan payment specifically, a monthly payment no more than 10–15% of take-home pay is a reasonable target. Use the calculator to work backwards from your budget — enter a comfortable monthly payment and adjust the vehicle price until the numbers line up.
Is a 60-month or 72-month auto loan better?
A 60-month loan has a higher monthly payment but lower total interest and less risk of negative equity. A 72-month loan reduces the monthly payment by roughly $50–80 on a $30,000 loan, but adds hundreds of dollars in total interest and keeps you underwater longer. Choose 60 months if you can afford it; use the calculator to see the exact trade-off for your specific numbers.
Should I finance through a dealer or my bank?
Get preapproved by your bank or credit union first — it gives you a baseline rate to compare against dealer financing. Dealers sometimes offer manufacturer-subsidized rates that beat banks (especially on new vehicles), but they can also mark up the rate for profit. Walking in with a preapproval gives you negotiating leverage on both the vehicle price and the financing terms.
Related Calculators
- Auto Lease Calculator — Estimate monthly lease payments and compare the full cost of leasing.
- Lease vs. Buy Calculator — See which option costs less over time based on your actual numbers.
- Negative Equity Calculator — Find out if you're upside-down on your current loan before trading in.
- Auto Refinance Calculator — Calculate how much you could save by refinancing at a lower rate.