Auto Loan Calculator
Find your monthly payment, total interest, and which loan term actually saves money.
Vehicle & Financing
Monthly payment
$660
for 60 months
Loan amount
$33.0K
price + tax + fees − down/trade
Total interest
$6.7K
over loan life
Total out of pocket
$44.6K
all-in
Loan Balance Over Time
Term Length Comparison
| Term | Monthly | Total interest | Total cost |
|---|---|---|---|
| 36 mo | $1,025 | $3,948 | $36,898 |
| 48 mo | $797 | $5,291 | $38,241 |
| 60 mo | $660 | $6,665 | $39,615 |
| 72 mo | $570 | $8,069 | $41,019 |
| 84 mo | $505 | $9,503 | $42,453 |
About this tool
A complete auto loan calculator that handles sales tax, down payment, trade-in value, and dealer fees. Compare 36, 48, 60, 72, and 84-month terms side-by-side to see exactly how much extra interest a longer loan really costs. Supports USD, EUR, GBP, AUD, CAD, and INR.
How to use it
Quick steps to get the most out of this utility.
- 1
Enter vehicle price and down payment
Include trade-in value if applicable.
- 2
Add sales tax and fees
Most US states charge sales tax on the full vehicle price. Doc fees and title cost typically run $200–800.
- 3
Set APR and term
Use the rate from your pre-approval, or shop based on credit tier (6–8% prime, 12%+ subprime).
- 4
Compare terms
The term comparison table shows the trade-off between monthly payment and total interest paid.
The 20/4/10 rule for car affordability
- 20% down to avoid being underwater quickly
- 4-year (48-month) loan max — anything longer signals you can't afford the car
- 10% of monthly take-home total transportation cost (loan + insurance + gas + maintenance)
Most Americans violate this rule by stretching to 72-84 month loans on cars they can't comfortably afford. The result: an average car payment of $750+ in 2026 and millions of borrowers underwater. The calculator's term comparison shows you the real cost of stretching.
Frequently asked questions
How is a car loan payment calculated?+
The standard amortization formula: Payment = Loan × (r / (1 − (1+r)^−n)), where r is the monthly interest rate (APR ÷ 12) and n is the number of months. Each payment splits between interest (high at first) and principal (high at the end).
Should I get a longer loan term to lower the monthly payment?+
Long-term loans (72 or 84 months) lower the monthly payment but cost much more in total interest. They also leave you upside-down (owing more than the car is worth) for years. The sweet spot for most borrowers is 48–60 months on a new car, 36–48 on used.
How much down payment should I make on a car?+
For new cars, aim for 20% down to avoid being upside-down quickly (new cars depreciate ~20% in year one). For used cars, 10% is acceptable since depreciation has already taken its hit. The bigger the down payment, the lower your interest cost over the loan.
Is dealer financing or bank financing better?+
Get pre-approved by your bank or credit union first, then let the dealer try to beat it. Dealers often inflate rates to earn back-end commissions, but they sometimes have manufacturer-subsidized rates (0%, 1.9%) you cannot get elsewhere. Always compare.
What APR should I expect on a car loan?+
In 2026, with prime credit (740+), expect 6–8% APR on a new car loan. Used car rates run 1–2% higher. If your credit is below 660, expect 12%+ — refinancing after 6–12 months of on-time payments often saves significant interest.
Keep exploring
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