Auto loan calculator

Enter the vehicle price, what you pay upfront and the loan terms to see the monthly payment and what the car really costs once interest is included.

How this calculator works

Car finance works like any other fixed-rate loan, but two details matter more than on a mortgage. First, the down payment and any trade-in reduce the amount financed directly, so every dollar upfront also removes interest from the whole term. Second, cars depreciate quickly: a five-year loan on a new car often ends with the balance close to or above the car's market value, which is what people mean by being “underwater”.

This calculator returns the amount financed, the monthly payment, the interest over the term, and the total outlay including what you paid upfront. Dealer fees, sales tax, registration and optional extras are not included; add them to the vehicle price if you want them in the payment.

The formula

Amount financed F = price − down payment. With monthly rate r = APR ÷ 12 ÷ 100 and n months:

Total interest is M × n − F. A zero-percent loan reduces the payment to F / n.

Worked example

A 32,000 car with a 4,000 down payment leaves $28,000.00 to finance. At 6.90% over 5 years the payment is $553.11 a month, total interest is $5,186.81, and the full outlay including the down payment is $37,186.81.

Common mistakes

• Stretching the term to hit a payment. A 84-month loan can leave you owing more than the car is worth for years. Compare total interest, not just the monthly number.
• Leaving out tax and fees. Sales tax, registration and dealer documentation fees are often financed, which raises both the payment and the interest.
• Skipping the down payment. Zero-down car loans are the quickest route to negative equity. A 10–20% down payment keeps the loan closer to the car's value.