Auto Loan Calculator

Estimate your monthly car payment, total interest, and total cost, and see how the loan term and rate change what you pay.

Estimate car loan payment, total interest, and total paid using standard amortization.

Auto loan amount

Interest rate

Loan term

years

Monthly payment

$632

Total interest

$5,928

Total paid

$37,928

Results are estimates for informational purposes only.

How to use this calculator

How your car payment is calculated

An auto loan is repaid in equal monthly payments. Each payment covers the interest charged on the remaining balance that month, and the rest pays down the loan. This calculator uses that standard amortization formula to show your payment, the total interest, and the total you will repay.

Enter the amount you will finance, not the sticker price: start with the negotiated price, add sales tax and fees if you are rolling them into the loan, then subtract your down payment and any trade-in value. A $36,000 car with $4,000 down, for example, is the default $32,000 loan.

Term length: 36 vs 60 vs 84 months

Longer terms lower the payment but add interest. On $32,000 at 6.9%, a 3-year loan costs $986.60 a month and $3,518 in interest. Stretching it to 7 years cuts the payment to $481.40 but raises the interest to $8,438, more than twice as much.

Long loans carry another risk: cars lose value quickly, and with a small down payment you can owe more than the car is worth for years. That negative equity becomes a problem if the car is totaled or you want to trade it in. A common guideline is to put about 20% down and keep the term to 4 or 5 years, so the balance falls about as fast as the car’s value.

Getting a better rate

Your rate depends mostly on your credit score, the loan term, and whether the car is new or used; used-car loans usually cost more. On the default loan, cutting the rate from 6.9% to 4.9% saves about $1,783 in interest, while paying 9.9% costs about $2,772 more.

Getting preapproved by a bank or credit union before visiting the dealer gives you a rate to compare with dealer financing. Negotiate the price of the car first and the financing second, because a monthly payment can be made to look low simply by extending the term.

You can also review Loan Calculator and Loan Comparison Calculator to compare scenarios.

Formula

Monthly payment = P × r ÷ (1 − (1 + r)^−n), where P is the amount financed, r the monthly rate (APR ÷ 12), and n the number of months
Total paid = monthly payment × n
Total interest = total paid − amount financed

Example: $32,000 at 6.9% for 60 months

Monthly rate: 6.9% ÷ 12 = 0.575%, over 60 payments.
Monthly payment: $632.13.
Total paid: $37,928, of which $5,928 is interest.
The same loan over 72 months costs $544.03 a month but $7,170 in interest.

Car payment by loan term

$32,000 financed at 6.9% APR.

Loan term	Monthly payment	Total interest	Total paid
3 years	$987	$3,518	$35,518
4 years	$765	$4,710	$36,710
5 years	$632	$5,928	$37,928
6 years	$544	$7,170	$39,170
7 years	$481	$8,438	$40,438

Frequently asked questions

What is the monthly payment on a $30,000 car loan?

At 6.9% APR, about $592.62 a month over 60 months, with $5,557 in total interest. Over 72 months, the payment drops to about $510.03, but interest rises to about $6,722.

Is a 72- or 84-month car loan a bad idea?

It is not always a mistake, but it is expensive. Compared with a 5-year term, the 7-year version of the default $32,000 loan saves about $151 a month but costs about $2,510 more in interest, and it keeps you owing more than the car is worth for longer.

Should I include sales tax and fees in the loan amount?

Only if you are financing them. Many buyers roll tax, title, and registration fees into the loan, which means paying interest on them. Paying those costs in cash keeps the loan smaller.

Does paying extra on a car loan save money?

Usually, yes. Most auto loans are simple-interest loans, so extra payments reduce the principal and less interest accrues afterward. Confirm there is no prepayment penalty, and ask the lender to apply extra money to principal rather than to future payments.