Auto Loan Calculator
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Calculate your exact monthly car payment, total interest, and full amortization schedule, with optional extra payments.
Quick answer: A longer auto loan term lowers your monthly payment but raises total interest paid. On a $35,000 loan at 6.9% APR, a 48-month term costs $836.50 per month with $5,151.79 in total interest, while a 72-month term drops the payment to $595.04 but adds up to $7,842.59 in interest, per standard loan-payment math.
Monthly Car Payment
$0.00
📊 Show Full Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
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📐 Formula
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1] where P = loan amount, r = monthly rate, n = number of payments
How to Use the Auto Loan Calculator
Enter the vehicle price, down payment, and trade-in
Enter the car's price, your down payment, and any trade-in value as three separate numbers. The calculator nets them automatically to find your amount financed, so there's no need to subtract them yourself.
Set the interest rate
Enter your APR, from a lender quote or pre-approval. Rates vary widely by credit tier; see the FAQ below for current typical ranges. Get pre-approved by your bank or credit union before visiting the dealership.
Choose the loan term
Pick 3 to 7 years. Shorter terms mean higher payments but substantially less total interest, so compare both figures carefully across term lengths.
Add an optional extra monthly payment
Enter an extra amount to pay toward principal each month. Even $50 to $100/month extra can pay off the loan a year or more early and save hundreds in interest.
Review your payment and amortization schedule
The result box shows your monthly payment, total interest, total cost, and payoff time. Expand the schedule below to see every month's principal, interest, and remaining balance.
What Determines Your Auto Loan Rate?
Your APR is primarily driven by your credit score. Superprime credit (781+) typically qualifies for around 4.4% on new cars as of Q2 2026. Broadly prime credit (661–780) sees roughly 6–7%. Near-prime and subprime borrowers (below 661) can face rates from high single digits well into the double digits, with deep subprime borrowers seeing 16%+ or requiring a co-signer. A 200-point score difference can mean $3,000–$5,000 extra in total interest on a $25,000 loan. Credit unions consistently offer 1 to 2% lower rates than dealership financing for identical borrower profiles; compare both before signing.
The Hidden Cost of Long Loan Terms
Dealers often advertise monthly payments rather than total cost, making longer terms appear attractive. A $28,000 car at 7% over 48 months costs $670/month and $4,184 total interest. The same car over 72 months costs $477/month but totals $6,371 in interest, $2,187 more. Additionally, 72-month loans leave you underwater (owing more than the car's value) for most of the term, creating financial risk if the vehicle is totaled or you need to sell. Most financial advisors recommend keeping auto loans to 48 months or fewer, especially for used vehicles, which depreciate faster and carry higher interest rates to begin with.
How to Calculate an Auto Loan Payment by Hand: Worked Example
Every auto loan quote comes from the standard amortization formula: M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]. Take a $35,000 loan at 6.9% APR and compare two terms.
48 months: the monthly rate is 0.069 ÷ 12 = 0.00575. Plugging in gives M = $836.50, and total interest of 48 × $836.50 − $35,000 = $5,151.79.
72 months: same rate, longer exponent. M = $595.04, but total interest climbs to $7,842.59.
The 72-month loan feels $241 a month cheaper, yet costs $2,691 more, and that gap widens in practice because longer terms usually carry higher rates than the same borrower would get at 48 months. The monthly payment is the price of the loan's convenience; total interest is the price of the loan.
What does the 20/4/10 rule say you can afford?
A common affordability screen: put at least 20% down, finance for no more than 4 years, and keep all monthly vehicle costs (payment, insurance, fuel) under 10% of gross income. On a $75,000 salary that caps total vehicle costs near $625 per month; once $150–$200 goes to insurance and fuel, the roughly $425–$475 left for the loan payment supports about an $18,000–$20,000 loan at 6.9% over 48 months. The rule is conservative by design; it exists to prevent the car from crowding out retirement savings. Run your full monthly numbers through the Budget Calculator to confirm this fits your overall 50/30/20 plan.
How Do You Avoid Being Upside Down on a Car Loan?
Why do long loans create negative equity?
A new vehicle typically loses 20% of its value in year one, while a 72- or 84-month loan retires principal slowly in the early months (most of each payment is interest at first). The result: for two to three years the loan balance exceeds the car's market value. If the car is totaled or you need to sell during that window, you owe the difference in cash. A larger down payment or shorter term keeps the balance under the depreciation curve from day one.
Should you finance through the dealer or a bank?
Get pre-approved by a bank or credit union before visiting the dealer, then let the dealer try to beat that rate. Dealer financing is sometimes genuinely cheaper (captive lenders subsidize rates to move inventory), but without an outside quote you have no benchmark, and the finance office knows it. Compare offers on APR and total interest using the calculator above, never on monthly payment alone, since stretching the term can make an expensive loan look cheap. Buying from a private seller instead of a dealer? Private-party sales often don't qualify for standard auto financing, so many buyers use a personal loan instead.
Frequently Asked Questions
Sources & Methodology
Calculations are based on the most current publicly available data from authoritative government and industry sources: