Finance Calculators
Auto Loan Calculator
Your monthly car payment is the amount financed — price minus down payment and trade-in, plus sales tax and fees — spread over the term at the agreed rate. Enter those figures and this calculator returns the monthly payment, the total interest, the total cost and a full amortisation schedule, so offers can be compared side by side.
Calculator
How It Works
Monthly Payment = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where P = loan amount, r = monthly rate, n = months.
About This Calculator
What It Does
Estimate your monthly car payment including interest and all purchase costs. Enter the vehicle sale price, down payment, trade-in value, cash incentives, sales tax rate, fees, loan term, and interest rate. The calculator shows the monthly payment, total interest, total repayment, and a detailed cost breakdown including sales tax and fees. It also generates a full amortization schedule. Use it to compare different financing options — see how a larger down payment, trade-in, cash rebates, or shorter loan term affect your monthly payment and total vehicle cost.
Worked Example
Example 1 — Standard: A $30,000 car with $6,000 down (20%) and $500 trade-in. Loan amount = $23,500. At 6% over 5 years: monthly payment ≈ $454. Total interest ≈ $3,760. Total cost (principal + interest) ≈ $27,260. Total with down payment and trade-in ≈ $33,760. Example 2 — Shorter term: Same $23,500 loan at 6% over 3 years: monthly payment ≈ $715. Total interest ≈ $2,240. Saving $1,520 in interest by financing 2 years less. Example 3 — Cash incentives: A $30,000 car with $2,000 cash rebate, $6,000 down, $500 trade-in. Loan = $21,500. At 6% over 5 years: monthly ≈ $416. Total interest ≈ $3,440.
Real-World Usage
Use before visiting a dealership to know what payment fits your budget. Compare financing offers from banks, credit unions, and dealer financing — credit unions often have the best rates. See how a larger down payment reduces your monthly cost and total interest. Use it to decide between buying new vs used (new has lower rates but higher price). Check whether the dealer's 0% financing is better than the cash rebate — the calculator helps compare the total cost.
Local Context
US auto loans typically run 3-7 years at rates 4-12% depending on credit score. Dealership financing, bank loans, and credit union loans all differ — credit unions often have the lowest rates. New cars get lower rates than used. Your FICO score heavily influences your rate. Many dealers offer 0-2% manufacturer-subsidized rates on new models, but these may forfeit cash rebates.
Dealer Financing vs Direct Lending
Dealerships usually arrange your loan through banks, finance companies or their own lending arm, and they are paid a commission for it — which means the rate you are quoted can carry a markup. Direct lending skips the middleman: you apply to a bank, credit union or online lender yourself and the quoted rate is the rate you pay. The practical move is to get a written quote from your own bank before you visit the dealership. That pre-approval sets a benchmark — if the dealer cannot beat it, use the outside loan. Compare APRs, not just interest rates, since fees are included in the APR, and keep the term length identical when you compare.
Vehicle Rebates and Incentives
Cash rebates come from the manufacturer, not the dealership, so every buyer qualifies for the same amount — a rebate is never a personal favor from the salesperson. The main fork in the road: promotional financing (such as 0% APR) and a large cash rebate are usually alternatives, so run both through this calculator before deciding. Because the money is manufacturer-funded, financing the car elsewhere does not cost you the rebate; if a discount only appears when you accept the dealer's financing, treat it as a financing condition, not a rebate. Ask for the out-the-door price in writing with each incentive itemized, and check the manufacturer's website for current offers before you visit.
Trade-In Value Tips
Your trade-in is a separate deal from the car you are buying — negotiate the two apart, or a low trade-in offer can disappear inside a large discount on the new car. Before you go, collect at least one written purchase offer from an online buying service or another dealer and compare it with the private-sale price: selling privately usually nets more, but takes longer and comes with paperwork. Clean the car, gather the service history, and bring both to the appointment. If you still owe money on the trade-in, watch out for negative equity: the payoff is subtracted from its value, and any shortfall is added to the new loan, where it collects interest of its own.
Last reviewed: September 2026.
This is an estimate only. Actual rates, terms, and tax rates depend on your location, credit score, lender, and vehicle type. Sales tax and fees are estimates — verify with your dealer and local tax authority.
Frequently Asked Questions
What credit score do I need for an auto loan?
Most lenders require a minimum credit score of 600-660 for competitive rates. Scores above 740 qualify for the best rates. Special financing programs exist for borrowers with scores as low as 500, but rates will be significantly higher.
Is a longer or shorter auto loan term better?
Shorter terms (36-48 months) have higher monthly payments but save thousands in interest. Longer terms (72-84 months) lower payments but cost more overall. Most financial advisors recommend 60 months or less.
Should I put money down on a car?
A down payment of at least 20% is recommended to avoid being upside-down on your loan. Putting less than 20% down typically requires higher interest rates and may require gap insurance.