Auto Loan Calculator
Find your monthly car payment and the total interest you will pay from the vehicle price, your down payment and trade-in, the rate, and the term.
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $4,774 | $1,490 | $22,226 |
| 2 | $5,068 | $1,196 | $17,158 |
| 3 | $5,381 | $883 | $11,777 |
| 4 | $5,713 | $551 | $6,065 |
| 5 | $6,065 | $199 | $0 |
How it's calculated
An auto loan is a standard amortizing loan, the same math as a mortgage on a shorter term. You borrow the price of the car after your down payment and trade-in, then repay it in equal monthly payments. Early payments are mostly interest, and the share going to principal grows as the balance falls.
Take the default. A $35,000 vehicle with $5,000 down and a $3,000 trade-in leaves $27,000 to finance. At a 6 percent rate over 60 months the monthly payment is $521.99. Across the full term you pay $4,319.14 in interest, so the loan costs $31,319.14 in total. A larger down payment or trade-in lowers every one of those figures, since you borrow less from the start.
The term is the biggest lever on the monthly payment. Stretching from 60 to 72 months lowers the payment but raises the total interest, because you borrow for longer. A shorter term does the reverse. Adding a little extra to each payment, set in the advanced options, goes straight to principal and shortens the loan, which is a simple way to cut the interest you pay.
Assumptions
- The amount financed is the vehicle price minus your down payment and trade-in value.
- A fixed rate compounded monthly over the term you set. Sales tax, title, and dealer fees are not included, so add them to the price if you are financing them.
Last updated: 2026-08-08
These assumptions follow our general methodology.
Frequently asked questions
How is a car payment calculated?
It is the amount financed spread over the term at your rate, using standard amortization. The amount financed is the price minus your down payment and trade-in. Each month you pay interest on the remaining balance plus enough principal to clear the loan by the end of the term.
How does a trade-in affect my loan?
A trade-in works like extra cash down. Its value comes straight off the price, so you finance less and your monthly payment and total interest both fall. In many states it also lowers the sales tax, though this calculator does not model tax.
Is a longer loan term a good idea?
A longer term lowers the monthly payment but costs more interest overall, and it raises the risk of owing more than the car is worth. A shorter term of 36 to 48 months costs more each month but far less in total. Pick the shortest term whose payment fits your budget.
Should I put more money down?
A larger down payment lowers the amount financed, so it cuts your payment and total interest and helps you avoid being underwater as the car depreciates. A common guideline is around 20 percent down on a new car, though any extra helps.
Does this include tax, title, and fees?
No. It finances the price minus your down payment and trade-in. If you plan to roll sales tax, title, and dealer fees into the loan, add them to the vehicle price so the amount financed matches what you actually borrow.