Use this car finance calculator to estimate your monthly car payment, the total interest you would pay and the full cost of an auto loan. Enter the vehicle price, down payment, trade-in value, APR and loan term, then press Calculate. The math runs in your browser and nothing you type is sent anywhere by the calculator.
| Month | Payment | Principal | Interest | Balance |
|---|
Estimate only. The calculator assumes a fixed-rate loan with equal monthly payments and interest charged monthly on the remaining balance. It is not a loan offer, it is not financial advice, and it does not include insurance, maintenance or any tax or fee you do not enter yourself. Last updated: October 17, 2026.
How to use each field
- Vehicle price
- The agreed price of the car before your down payment and trade-in. Enter taxes and fees separately so you can see their effect.
- Down payment
- Cash you pay upfront. It reduces the amount you borrow.
- Trade-in value
- The credit the dealer gives for your current car. If you still owe money on it, ask the lender how that balance is handled, because it can raise the amount financed.
- Annual interest rate / APR
- The yearly rate from your lender's offer. Enter 0 for a 0% promotion. The calculator applies this rate to your remaining balance each month.
- Loan term
- How many monthly payments you will make, for example 60 for five years.
- Taxes & fees
- A total in dollars for sales tax, title, registration, documentation and similar charges. Choose whether you would add them to the loan or pay them upfront. Amounts and rules vary by state and dealer, so use the figures on your buyer's order.
Worked example: $30,000 car, $5,000 down, 6% APR, 60 months
These are illustrative numbers, not a quote. They are the values pre-filled in the calculator, so you can check the results yourself.
- Amount financed: $30,000 − $5,000 = $25,000.
- Monthly payment: $483.32.
- Total interest over 60 months: $3,999.23.
- Total of all loan payments: $28,999.23 (the final payment is $483.35 because of rounding).
- Total purchase cost including the $5,000 down payment: $33,999.23.
The monthly payment formula
For a fixed-rate loan with equal payments, the standard formula is:
M = P × r ÷ (1 − (1 + r)−n)
- M is the monthly payment.
- P is the amount financed.
- r is the monthly rate: the annual rate divided by 12 (6% becomes 0.005).
- n is the number of monthly payments.
With P = 25,000, r = 0.005 and n = 60: (1.005)−60 ≈ 0.741372, so M = 25,000 × 0.005 ÷ (1 − 0.741372) ≈ $483.32. At a 0% rate the formula simplifies to M = P ÷ n.
Principal, interest, APR, term and total cost
- Principal is the amount you borrow. Each payment pays down part of it.
- Interest is the cost of borrowing. Early payments contain more interest because the balance is higher.
- APR (annual percentage rate) expresses the yearly cost of credit and can include certain finance charges, so it is not always identical to the plain interest rate in a contract. The calculator treats the rate you enter as the rate applied to your balance, so entering an APR that includes fees gives an approximation.
- Term is the repayment period. Longer terms lower the monthly payment but usually raise total interest.
- Total amount paid is the sum of all payments. It is the number to compare between offers, not the monthly payment alone.
How your down payment changes the payment and the interest
A larger down payment means a smaller loan, which lowers both the payment and the interest. Example: $30,000 car, 6% APR, 60 months.
| Down payment | Amount financed | Monthly payment | Total interest | Total loan payments |
|---|---|---|---|---|
| $0 | $30,000 | $579.98 | $4,799.09 | $34,799.09 |
| $5,000 | $25,000 | $483.32 | $3,999.23 | $28,999.23 |
| $10,000 | $20,000 | $386.66 | $3,199.35 | $23,199.35 |
Going from $0 to $10,000 down lowers the payment by $193.32 a month and the interest by $1,599.74. Keep an emergency fund in mind before putting every spare dollar into a down payment.
Comparing loan terms
Same $25,000 loan at 6% APR, different terms:
| Term | Monthly payment | Total interest | Total loan payments |
|---|---|---|---|
| 36 months | $760.55 | $2,379.70 | $27,379.70 |
| 48 months | $587.13 | $3,182.00 | $28,182.00 |
| 60 months | $483.32 | $3,999.23 | $28,999.23 |
| 72 months | $414.32 | $4,831.23 | $29,831.23 |
| 84 months | $365.21 | $5,678.02 | $30,678.02 |
Stretching from 36 to 84 months cuts the payment by $395.34 but adds $3,298.32 in interest. A long term can also leave you owing more than the car is worth for longer, so consider the term as well as the payment.
New vs. used car loans
Lenders can set different rates, maximum terms and requirements for new and used vehicles, and the price gap changes the amount you borrow. The two scenarios below use hypothetical rates chosen for illustration only. They are not market averages, so replace them with the rates you are actually offered.
| Scenario | Amount financed | Monthly payment | Total interest | Total loan payments |
|---|---|---|---|---|
| New: $35,000, $5,000 down, 6% APR, 60 months | $30,000 | $579.98 | $4,799.09 | $34,799.09 |
| Used: $20,000, $3,000 down, 8% APR, 48 months | $17,000 | $415.02 | $2,920.95 | $19,920.95 |
Taxes, fees, trade-in and other costs that change the real cost
Sales tax, title and registration fees, dealer documentation fees, add-ons and your trade-in treatment differ by state and by dealer, so check your buyer's order. Insurance, fuel and maintenance are not part of a loan payment at all.
Whether you finance fees matters. Example: $30,000 car, $5,000 down, $2,000 trade-in, $2,500 in taxes and fees, 6% APR, 60 months.
| Taxes & fees | Amount financed | Monthly payment | Total interest | Total purchase cost |
|---|---|---|---|---|
| Added to the loan | $25,500 | $492.99 | $4,079.14 | $36,579.14 |
| Paid upfront | $23,000 | $444.65 | $3,679.31 | $36,179.31 |
Financing the $2,500 lowers your upfront cash need but adds $399.83 in interest over the loan. Total purchase cost here means loan payments plus the down payment, trade-in value and any upfront fees.
Amortization schedule
An amortization schedule shows how each payment splits between interest and principal and what balance remains. Use the button under the calculator results to see the full schedule for your numbers. This is the start of the schedule for the worked example:
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $483.32 | $358.32 | $125.00 | $24,641.68 |
| 2 | $483.32 | $360.11 | $123.21 | $24,281.57 |
| 3 | $483.32 | $361.91 | $121.41 | $23,919.66 |
| 4 | $483.32 | $363.72 | $119.60 | $23,555.94 |
| 5 | $483.32 | $365.54 | $117.78 | $23,190.40 |
| 6 | $483.32 | $367.37 | $115.95 | $22,823.03 |
| 60 | $483.35 | $480.95 | $2.40 | $0.00 |
Month 1 interest is $25,000 × 0.5% = $125.00. The schedule rounds every amount to the cent and adjusts the last payment to clear the balance, so totals can differ from a lender's by a few cents.
Mistakes to avoid before you sign
- Focusing only on the monthly payment. Compare the total cost, interest and term of each offer.
- Not shopping for financing. The Consumer Financial Protection Bureau recommends comparing offers from several lenders, such as banks and credit unions, with what the dealer offers.
- Forgetting add-ons and fees. Extras rolled into the loan are financed and accrue interest.
- Assuming this estimate is your contract. Your lender's APR, fees and interest method decide the real numbers. Read the contract.
- Choosing a very long term without checking total interest. Run the same loan at two or three terms first.
- Treating a lease like a loan. Lease payments are calculated differently and this calculator does not apply to leases.
Frequently asked questions
How is a monthly car payment calculated?
Using the standard fixed-payment formula shown above, based on the amount financed, the monthly interest rate and the number of payments.
Does this calculator include sales tax, insurance and registration?
Only the taxes and fees you type into the optional field. It does not include insurance, maintenance, fuel or any charge you do not enter.
What is the difference between APR and interest rate?
APR is meant to express the yearly cost of credit and can include certain finance charges, so it may differ from the plain interest rate. Ask your lender for both and for the contract terms.
Is a bigger down payment always better?
It lowers the amount financed and the interest, as the table above shows. It also uses cash you may need elsewhere, so balance it against your savings.
Does a longer loan term save money?
It lowers the monthly payment but usually increases total interest, as the term comparison shows.
Can I use this calculator for a lease?
No. This tool is for loans with fixed monthly payments. Leases use different calculations.
Sources and further reading
- Take control of your auto loan, Consumer Financial Protection Bureau (PDF)
- Financing or leasing a car, Federal Trade Commission
More on this blog: try our finance calculator, browse more free financial calculators and read why financial planning matters before a big purchase. Reading in Portuguese? See the Calculadora de Empréstimo Moçambique and Como Pagar Menos Juros em Empréstimos em Moçambique.
Conclusion
Run your own numbers at several down payments and terms, then compare the total cost, not just the monthly payment. Treat the result as a planning estimate and confirm every figure against a written offer from your lender before you sign.
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