Free car loan calculator
Enter price, down payment, APR, and term — this car loan calculator returns your monthly payment and the total cost of financing, updated live, as you type.
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Does not include sales tax, fees, or insurance. Get pre-approved before visiting a dealership to negotiate from a position of strength.
Results are estimates. Consult a professional.
How the car loan calculator works
A car loan — whether for a new or used vehicle — amortizes the borrowed amount over a fixed term. Each monthly payment covers the interest that accrued on the remaining balance since your last payment, with the remainder chipping away at principal. The payment amount stays the same every month; what changes is the split between interest and principal.
Your principal is the vehicle's negotiated price minus your down payment and any trade-in credit. The calculator uses the standard amortization formula to compute your fixed monthly payment and total interest for the life of the loan.
Worked example: $30,000 car, 60 months at 6.5% APR
You purchase a $30,000 sedan, make a $3,000 down payment, and finance $27,000 for 60 months at 6.5% APR. What is your monthly payment, and what will the car actually cost you in total?
Total cost of a $30,000 car at various APRs and terms
This table shows the full amount you pay back (monthly payment × term) on a $30,000 loan. The difference between cells shows exactly what a higher rate or longer term costs you in extra interest.
| APR | 48 months | 60 months | 72 months | 84 months |
|---|---|---|---|---|
| 5% | $33,162 | $33,968 | $34,799 | $35,631 |
| 7% | $34,474 | $35,649 | $36,819 | $38,022 |
| 9% | $35,838 | $37,365 | $38,946 | $40,553 |
| 11% | $37,225 | $39,141 | $41,116 | $43,152 |
Source: Standard amortization formula. For illustration — Bankrate 2024. Totals include interest only; add down payment, tax, and fees for true total cost.
Notice that going from a 48-month term to an 84-month term at 9% APR adds over $4,700 in interest on a $30,000 loan. A lower rate matters too — the spread between 5% and 11% on a 60-month loan is more than $5,170.
Tips for financing a car wisely
New or used, the financing decision is as important as the vehicle choice. These five guidelines help you minimize the total cost and avoid common pitfalls.
- Compare the total cost, not just the monthly payment — A lower monthly payment almost always means a longer term and more total interest. Use this calculator to compare the full repayment amount across different term and rate combinations before committing.
- Shop lenders, not just dealers — Banks, credit unions, and online lenders all offer direct auto financing. Credit unions in particular frequently beat dealer rates by 1–2 percentage points. Get at least three quotes before walking into a showroom.
- Know your credit score before you apply — Rates are tiered by credit band. A score above 720 typically unlocks the best rates; below 620, you may face subprime rates above 15%. Knowing your score helps you set realistic expectations and spot overpriced dealer financing.
- Avoid rolling negative equity from your trade-in — If you owe more on your current car than it's worth, the shortfall is often added to your new loan, instantly putting you underwater. Pay it off separately if possible.
- Watch out for payment packing — Dealers sometimes inflate the monthly payment and use the difference to sell add-ons (GAP insurance, paint protection) you didn't ask for. Always verify that the payment matches the rate, term, and principal you agreed on.
Accuracy and limitations
This calculator assumes a fixed APR with equal monthly payments and no prepayment. It does not include dealer fees, documentation charges, sales tax, title and registration, GAP insurance, or extended warranties — all of which increase the true out-of-pocket cost. Some lenders also charge origination or acquisition fees that may not be fully reflected in the quoted APR.
Results are planning estimates, not a loan commitment. APR ranges cited are from CFPB and Bankrate 2024 surveys and will vary with market conditions and your individual creditworthiness. Your lender's official TILA disclosure is the document that governs your actual obligation.
Car loan terms defined
About this car loan calculator
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