Auto Loan Calculator

Monthly payment uses the standard amortization formula: M = P(r(1+r)^n)/((1+r)^n-1), where P is the financed amount (price minus down payment and trade-in, plus taxes and fees), r is the monthly interest rate, and n is the number of months. This calculator handles the full purchase price including taxes and fees.

A larger down payment reduces the amount financed, lowering both your monthly payment and total interest paid. Putting at least 20% down also reduces the risk of being upside-down on the loan (owing more than the car is worth) since vehicles depreciate quickly.

Auto loan rates vary by credit score, loan term, and whether the car is new or used. As of 2026, rates for buyers with excellent credit (720+) are typically 4-7% for new cars and 6-10% for used cars. Buyers with lower credit scores may see rates of 15-25% or higher. Always get preapproved by a bank or credit union before visiting a dealership.

Shorter terms (36-48 months) have higher monthly payments but lower total interest. Longer terms (60-84 months) lower monthly payments but significantly increase total interest paid and the risk of being upside-down on the loan. Most financial advisors recommend keeping auto loan terms at 60 months or less.

Common fees include sales tax (varies by state, typically 4-10%), documentation fees (dealer admin fees, typically $100-500), registration and title fees (state-specific), and dealer preparation fees. This calculator includes a field for estimated taxes and fees so you can model the full financed amount.