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Auto Loan Calculator

See your monthly car payment — and how much interest you'll pay over the life of the loan.

Vehicle details
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How to Use This Calculator

Vehicle price

Enter the total price of the vehicle you want to buy. This is the sticker price or negotiated purchase price before any down payment or trade-in.

Down payment

Enter the cash amount you plan to put down upfront. A larger down payment lowers your loan amount, reduces monthly payments, and saves you interest over the life of the loan.

More Options

Expand "More Options" to customize your interest rate (APR), loan term (in months), and trade-in value. Adjusting these lets you compare different financing scenarios side by side.

Share your result

Every input is encoded in the URL. Click Share, send the link — they'll see your exact numbers. No re-entering, no screenshots.

The Formula

Auto loans use the standard annuity formula to calculate a fixed monthly payment that fully pays off the loan over the chosen term.

M = P × [ r(1 + r)n ] / [ (1 + r)n − 1 ]

Where:
P = Vehicle Price − Down Payment − Trade-in Value
r = Monthly interest rate (APR ÷ 12)
n = Number of monthly payments (loan term)
M = Monthly payment

Example

Sarah — buying a $35,000 Honda CR-V

Sarah wants to buy a Honda CR-V priced at $35,000. She has $5,000 for a down payment and gets approved for a 6.5% APR over 60 months with no trade-in.

Vehicle price$35,000
Down payment$5,000
Loan amount (P)$30,000
Interest rate (APR)6.5%
Loan term60 months

Using the annuity formula:

Monthly payment~$587
Total interest paid~$5,203
Total cost of car~$40,203

Sarah will pay about $587 per month. Over 5 years she'll pay roughly $5,203 in interest, bringing the total cost of her $35,000 CR-V to about $40,203 including the down payment.

FAQ

A common guideline is the 20/4/10 rule: put at least 20% down, finance for no more than 4 years, and keep your total monthly vehicle costs (payment + insurance + gas) under 10% of your gross monthly income. For example, if you earn $60,000 a year ($5,000/month), aim for total car costs under $500/month. This keeps your auto debt manageable and leaves room for other financial goals.
It depends on whether you're looking at a simple interest rate or an APR. A simple interest rate reflects only the cost of borrowing the principal. The APR (Annual Percentage Rate) may include certain fees and charges rolled into the rate, giving you a more complete picture of borrowing cost. Auto loans typically quote an APR, but always ask your lender what's included — origination fees, documentation fees, and dealer markups can vary.
Most auto loans allow early payoff, and doing so saves you interest. However, some lenders charge a prepayment penalty — a fee for paying off the loan before the scheduled end date. Check your loan agreement or ask your lender before making extra payments. If there's no penalty, even small additional monthly payments can shave months off your term and save hundreds in interest.
Your credit score is one of the biggest factors in the interest rate you'll receive. Borrowers with excellent credit (750+) typically qualify for the lowest rates — often 4-5% or less on new cars. Good credit (700-749) still gets competitive rates, while fair credit (650-699) may see rates of 8-12%. Below 650, rates can climb to 15% or higher. Improving your credit score before applying — by paying down debt and correcting errors on your report — can save you thousands over the life of the loan.

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