An auto loan calculator works out the monthly payment and total interest on a car loan from the price, down payment, trade-in, APR and term. Financing $27,000 at 6.5% for 60 months costs about $528.29 a month.
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How to use the auto loan calculator
- Enter the vehicle price.
- Enter your down payment and any trade-in value.
- Enter the APR and the term in months.
- Read the payment, amount financed and total interest.
What formula does the auto loan calculator use?
- Amount financed = price − down payment − trade-in
- Monthly rate r = APR ÷ 12; n = months
- Payment = amount financed × r ÷ (1 − (1 + r)−n)
- Total interest = payment × n − amount financed
Auto loan calculator worked example
| Price | Down | APR | Months | Payment | Total interest |
|---|---|---|---|---|---|
| $30,000 | $3,000 | 6.5% | 60 | $528.29 | $4,697 |
| $30,000 | $3,000 | 6.5% | 72 | $453.87 | $5,679 |
| $30,000 | $3,000 | 6.5% | 48 | $640.30 | $3,735 |
| $30,000 | $3,000 | 4.5% | 60 | $503.36 | $3,202 |
| $30,000 | $6,000 | 6.5% | 60 | $469.59 | $4,175 |
| $40,000 | $4,000 | 8% | 72 | $631.20 | $9,446 |
On a $30,000 car with $3,000 down, you finance $27,000. At 6.5% for 60 months the payment is $528.29 and total interest is $4,697. Stretching to 72 months cuts the payment to $453.87 but raises interest to $5,679.
Choosing a loan term
Longer terms lower the payment but cost more interest, and lenders often charge a higher rate on them. Cars lose value quickly, so a long loan can leave you owing more than the car is worth for years. That matters if you want to trade in early or the car is written off. If the payment only fits on a 72- or 84-month term, a cheaper car may be the safer choice.
What the payment leaves out
- Sales tax, registration and dealer documentation fees, unless you add them to the amount financed.
- Optional products such as extended warranties or GAP coverage, which raise the amount financed if rolled into the loan.
- Insurance, fuel and maintenance, which you pay separately.
Shopping for a rate
Getting preapproved by a bank or credit union before visiting a dealer gives you a rate to compare with dealer financing. Compare offers by APR for the same term and amount, and read the contract to check the price, APR, term and any add-ons before you sign.
Estimates for education only, not financial advice. Your lender’s figures are final.
Paying the loan off early
Most auto loans use simple interest, charged on the balance as it falls, so paying extra toward the principal lowers the interest you pay and shortens the loan. Even an extra $50 a month makes a difference over five years, and rounding the payment up to the next $25 or $50 is an easy habit that adds up without much effort. Check that the contract has no prepayment penalty and tell the lender that extra money should go to principal. The auto loan calculator shows the standard schedule; to see the effect of extra payments, rerun it with a shorter term and compare the total interest.
How much car you can afford
A common rule of thumb is to keep the total cost of owning a car, including the loan payment, insurance and fuel, to a modest share of take-home pay, often quoted as 10% to 15%. These are guidelines rather than rules; what matters is that the payment fits your budget alongside savings and other debts. Start with the payment you are comfortable with, then use the auto loan calculator to work backward: try different prices, down payments and terms until the payment and total interest both look reasonable.
A bigger down payment helps in two ways: it reduces the amount financed and it lowers the chance of owing more than the car is worth in the first years, when depreciation is fastest. If you have a trade-in, check its value from more than one source before accepting the dealer’s figure, and enter it in the auto loan calculator as a separate amount so you can see how much it lowers the payment.
Related converters and calculators
Related calculators:
- Auto lease calculator: leasing
- Loan calculator: loans
- APR calculator: APR
- Sales tax calculator: tax
To estimate what the car will be worth later, use the car depreciation calculator.
Sources
CFPB: Regulation Z § 1026.22, determination of APR.
Questions about this calculator
What is the payment on a $27,000 car loan at 6.5% for 60 months?
About $528.29.
Is a 72-month car loan a good idea?
It lowers the payment but raises total interest and the risk of owing more than the car is worth.
Does the payment include tax?
Only if you add tax and fees to the amount financed.
How does a down payment help?
It lowers the amount financed, the payment and the interest.
How do I compare loan offers?
Compare APRs for the same amount and term.
Check the assumptions and units before relying on a result. Financial, tax and health estimates do not replace advice for your individual circumstances.
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