Auto Loan Calculator
Calculate your monthly car payment, total interest, and overall cost of financing a vehicle. Compare different loan terms and down payments.
How to Use
Enter the vehicle price, your down payment, trade-in value (if any), interest rate, loan term, and sales tax rate. Click Calculate to see your monthly payment, total loan amount, total interest, and total cost of the vehicle.
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Understanding Auto Loan Costs
The total cost of a car includes the vehicle price, sales tax, and interest paid over the loan term. A longer loan term means lower monthly payments but more interest paid overall. For example, a $30,000 car at 5% for 60 months costs $33,968 total, but at 72 months it costs $34,763 — an extra $795 in interest.
Tips for Getting the Best Auto Loan
1) Check your credit score before shopping. 2) Get pre-approved from your bank or credit union. 3) Compare offers from multiple lenders. 4) Consider a shorter loan term if affordable. 5) Make a larger down payment to reduce interest. 6) Avoid add-ons and extended warranties from the dealer.
Auto Loan Payment Planning
An auto loan is one of the most common types of secured financing. CalcSolver's auto loan calculator factors in the vehicle price, down payment, interest rate, loan term, and local sales tax to give you a complete monthly payment estimate.
For a $35,000 car with $5,000 down payment at 6% APR for 48 months, you finance $30,000 and pay approximately $705/month. Total interest over the loan term is about $3,240. Extending to 60 months reduces payments to $580 but increases total interest to $4,800 — an extra $1,560 for the convenience of lower monthly payments.
New cars typically qualify for lower rates (3-6%) than used cars (5-10%). A 20% down payment is recommended to avoid being "upside down" on the loan (owing more than the car's value). Pre-approval from a bank or credit union gives you a rate benchmark before visiting the dealership. Use our loan calculator and sales tax calculator for complete auto purchase planning.
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Frequently Asked Questions
How is a monthly car payment calculated?
Monthly car payments use the amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the loan amount, r is the monthly interest rate, and n is the number of payments.
What is a good interest rate for an auto loan?
Rates vary by credit score. Below 5% is good for new cars; 6-10% is typical for used cars. Excellent credit (750+) may qualify for 2-3% rates.
Should I make a large down payment on a car?
A larger down payment reduces your loan amount, monthly payment, and total interest. Experts recommend at least 20% for new cars and 10% for used cars.
Is it better to finance through a dealer or bank?
Compare both. Banks often offer lower rates for good credit. Dealer financing can be convenient. Get pre-approved from your bank first for negotiating leverage.