Car Loan Calculator

Calculate your monthly auto loan payment, total interest, and total cost. This tool processes all data locally in your browser. No information is ever sent to any server. Completely free, no registration required.

How to Use the Car Loan Calculator

1. Enter your input values above
2. Results update automatically
3. Copy or download the output

What is a Car Loan Calculator?

A Car Loan Calculator helps you estimate your monthly auto loan payments, total interest costs, and the full price you'll pay after financing. In 2026, with average new car prices around $48,000 and used car prices around $28,000, most buyers finance their vehicles over 48-72 months. Interest rates vary significantly based on credit score — prime borrowers (720+ FICO) may qualify for 4-6% APR while subprime borrowers (600-659) may face 12-18%. The calculator shows how different loan terms affect your monthly payment and total interest, and whether a new or used car fits your budget. It also accounts for down payments, trade-in value, and sales tax.

How Does It Work?

Enter the car price, down payment, trade-in value, sales tax rate, interest rate (APR), and loan term. The calculator first determines the loan amount: Price - Down Payment - Trade-in + Sales Tax. Then it applies the amortization formula: M = P × [r(1+r)^n] / [(1+r)^n - 1]. The output shows your monthly payment, total interest paid over the loan, and the total cost including all interest.

Formula

Loan Amount = Car Price + Sales Tax − Down Payment − Trade-In\n\nMonthly Payment = P × [r(1+r)ⁿ] / [(1+r)ⁿ − 1]\n\nWhere:\nP = Loan Amount\nr = Monthly Interest Rate (APR ÷ 12)\nn = Loan Term in Months\n\nTotal Interest = (Monthly Payment × n) − P\nTotal Cost = Down Payment + Trade-In + (Monthly Payment × n)

Who Uses This Tool?

• Car buyers comparing financing vs. cash purchase
• Shoppers evaluating different loan terms (36, 48, 60, 72 months)
• Buyers with trade-ins calculating net loan amount
• Borrowers comparing financing through dealer vs. bank/credit union
• Anyone estimating the true cost of a car after interest

Pro Tips

• Get pre-approved from a bank or credit union before visiting the dealer. You'll have a rate to compare against dealer financing offers
• Loan terms beyond 60 months mean lower monthly payments but significantly more total interest. A $35,000 loan at 6% for 72 months costs $6,800 in interest vs. $5,600 for 60 months
• The '20/4/10 rule' for responsible car buying: 20% down payment, 4-year (48 month) loan max, and total car expenses (including insurance) under 10% of gross monthly income
• Credit unions typically offer 1-2% lower auto loan rates than banks. Membership is often easy to obtain

Frequently Asked Questions about Car Loan Calculator

Should I finance through the dealer or my bank?

Always get pre-approved by your bank or credit union first — this gives you a benchmark rate. Dealer financing can sometimes beat bank rates (especially manufacturer-subsidized rates like 0-2.9% APR), but dealers may also mark up the rate and pocket the difference. Compare the total cost, not just the monthly payment.

Is a longer loan term worth the lower payment?

Generally no. A 72-month loan at 6% on $35,000 costs about $6,800 in interest vs. $5,600 for 60 months — that's $1,200 more. And longer terms increase the risk of being 'upside down' (owing more than the car is worth). 48-60 months is ideal.

What's a good down payment on a car?

Aim for at least 20% on a new car and 10% on a used car. A larger down payment reduces your loan amount, may qualify you for better rates, and prevents you from being upside down on the loan immediately due to depreciation.

Free online Car Loan Calculator — no signup, 100% client-side processing. All data stays in your browser.