Auto Loan Calculator
Estimate your monthly car payment, total interest, and full payoff schedule. Includes price, down payment, trade-in value, and sales tax.
| Year | Principal | Interest | Balance |
|---|---|---|---|
| Year 1 | $5,498 | $2,221 | $26,602 |
| Year 2 | $5,924 | $1,794 | $20,678 |
| Year 3 | $6,384 | $1,334 | $14,294 |
| Year 4 | $6,880 | $839 | $7,414 |
| Year 5 | $7,414 | $305 | $0 |
How it works
- 1Enter the vehicle price
Use the negotiated out-the-door price, not the sticker.
- 2Subtract down payment + trade-in
Both reduce the loan amount dollar-for-dollar.
- 3Add taxes and pick a term
Sales tax is usually rolled into the loan. 48–60 months is the sweet spot.
Buying a car is one of the largest decisions most people make outside of housing. The monthly payment is what gets advertised, but the total interest paid and the loan-to-value ratio matter just as much for your long-term finances.
Here's how the math works. The loan amount equals: vehicle price + sales tax − down payment − trade-in value. That principal is then amortized over the loan term at the agreed APR. A $30,000 loan at 7.5% over 60 months means a payment of about $601/month and roughly $6,066 in total interest paid.
Stretch the loan to 84 months and the same $30,000 only costs $463/month — but you'll pay $8,876 in interest, almost 50% more. Worse, cars depreciate ~20% the first year and 50% by year five, so long-term loans often leave you underwater (owing more than the car is worth) for the entire loan period.
The 20/4/10 rule is a useful guardrail: put 20% down, finance for no more than 4 years, and keep total transportation costs (loan, insurance, fuel, maintenance) under 10% of gross income. If a car doesn't fit that, it's probably out of budget — even if the dealer can technically make the payment work.
Always get pre-approved through your bank or credit union before stepping into the dealer. Even a 1% rate difference saves around $1,000 on a typical 5-year loan.
Example scenarios
Loan ~$22k. Payment ~$516, interest ~$2,750.
Loan ~$36k. Payment ~$713, interest ~$6,800.
Payment ~$936, interest ~$18,600. Underwater for years.
Common questions
What's a typical auto loan rate?
New car rates currently range from about 6–8% for prime credit, and 9–14%+ for fair-to-poor credit. Used cars typically run 1–2% higher than new car rates.
How long should an auto loan be?
48–60 months is the sweet spot. 72 and 84-month loans lower the monthly payment but you'll often owe more than the car is worth (be 'underwater') for years and pay much more in interest.
Should I put money down on a car?
Yes — at least 10% on used and 20% on new is the conservative target. A larger down payment reduces the loan, lowers the monthly payment, and prevents being underwater if the car depreciates fast.
What is a trade-in?
Trading in your current vehicle reduces the new loan amount. Get a separate cash offer (e.g. CarMax, Carvana) before negotiating — dealers often start with low trade-in numbers.
Should I finance through the dealer or my bank?
Get pre-approved at your bank or credit union FIRST. Then let the dealer try to beat that rate. Without a pre-approval you have no leverage in the F&I office.