Your monthly auto loan payment
Enter the price, what you put down, and the loan terms. Tax and fees are your own estimate.
- Amount financed$29,500.00
- Cash and trade-in applied$8,000.00
- Total interest$5,548.12
- Total of all payments$35,048.12
- Monthly payment$584.14
How an auto loan payment works
Most auto loans have a fixed APR and equal monthly payments. Each month, interest is charged on what you still owe, and the rest of the payment pays down the loan. The amount financed is the price plus any tax and fees you roll in, minus your down payment and trade-in.
For the exact numbers behind each payment, open the amortization schedule calculator. The dedicated pages for a car payment and a motorcycle loan start from a down payment percent or a gear budget.
Short term or long term
| Term | Monthly payment | Total interest |
|---|---|---|
| 36 months | $910.87 | $3,291.48 |
| 48 months | $706.41 | $4,407.88 |
| 60 months | $584.14 | $5,548.12 |
| 72 months | $502.95 | $6,712.09 |
Stretching from 36 to 72 months drops the payment by about $408 but adds $3,420.61 in interest. A long loan can also leave you owing more than the car is worth for longer, which matters if you want to sell or trade early.
How the APR changes the payment
| APR | Monthly payment | Total interest |
|---|---|---|
| 4% | $460.41 | $2,624.78 |
| 6% | $483.32 | $3,999.20 |
| 8% | $506.91 | $5,414.59 |
| 10% | $531.18 | $6,870.57 |
| 12% | $556.11 | $8,366.67 |
On a $25,000 loan over 60 months, every 2 points of APR add roughly $23 to $25 a month. Before you visit a dealer, getting a quote from a bank or credit union gives you a rate to compare against.
Down payment, trade-in, and fees
- A larger down payment shrinks the loan and the interest. It also helps you start with equity in the car.
- A trade-in works like cash toward the price. Check what the car is worth before you accept the dealer number.
- Sales tax, title, registration, and dealer fees depend on where you live. The calculator takes one number for them, so enter your own estimate.
- Some lenders charge fees or add extras such as add-on products. Ask for the total financed amount in writing.
Common mistakes
- Shopping by monthly payment alone. A low payment on a long term can cost thousands more.
- Comparing a rate with a different APR definition. Compare APR to APR, with fees counted.
- Forgetting insurance, gas, and maintenance, which are not in the loan payment.
- Rolling negative equity from an old loan into a new one. The new loan starts out even larger.
For other kinds of borrowing, see the personal loan calculator and the credit card payoff calculator.
Go deeper
Frequently asked questions
How do I calculate a car payment?
Subtract your down payment and trade-in from the price, add any tax and fees you finance, then apply the loan formula with your APR and term. $29,500 at 7% for 60 months is $584.14 a month.
What is a good car loan term?
A shorter term costs less in interest, and a longer term lowers the payment. On $29,500 at 7%, 48 months costs $706.41 a month and $4,407.88 in interest, while 72 months costs $502.95 and $6,712.09. Choose the payment you can carry without stretching.
How much car can I afford with a $550 monthly payment?
With $8,000 down or traded in, a 7% APR, and 60 months, $550 a month supports a car priced near $35,776. Taxes and fees come out of that, so the sticker price you can pay is lower.
Does a bigger down payment lower my interest?
It lowers the amount you borrow, so total interest drops. Each extra $1,000 down on a 60-month loan at 7% cuts the payment by about $19.80 and interest by about $188.
Should I roll sales tax and fees into the loan?
Paying them in cash keeps the loan smaller and saves interest. Rolling them in adds to the amount financed, so you pay interest on them. Use the fees box to see the difference in your payment.
Does the calculator work for a used car?
Yes. The math is the same for a new or used vehicle. Used-car loans often carry a higher APR, so enter the rate from your own quote.
Sources and review
- Standard fixed-rate amortization formula