Auto Loan Calculator: Estimate Your Monthly Car Payment
Your car payment comes down to four numbers: what you finance, your interest rate, your loan term, and anything you put down. Change one and the other three change with it. Use the calculator to see how much each one moves the payment before you sit down in the finance office.
Auto Loan Calculator
This calculator provides an estimate of your car payment, but accuracy is not guaranteed and may not reflect all fees and taxes.
If you are looking to see how much you can save by refinancing your auto loan, use this calculator instead.
How To Use This Car Loan Payment Calculator
Start with the out-the-door price, not the sticker price, since tax, title and dealer fees all get financed along with the car. Subtract your down payment and any trade-in value, pick your term, and enter the APR you were actually quoted. The payment and the total cost of the loan update as you type.
If you'd like to see how manufacturer promotions like rebates or low APR affect your loan payment, check out this calculator instead.
When determining your monthly budget, remember to also include gas and insurance, and set aside money for maintenance and unexpected repairs.
What a Longer Loan Term Really Costs
Stretching the term is the easiest way to hit a payment target, and it is also the most expensive. Here is $30,000 financed at 7%:
| Term | Monthly payment | Total interest |
|---|---|---|
| 48 months | $718 | $4,483 |
| 60 months | $594 | $5,642 |
| 72 months | $511 | $6,826 |
| 84 months | $453 | $8,034 |
Going from 48 to 84 months drops the payment by $265, and costs an extra $3,551 in interest. It also keeps you underwater on the loan far longer, which matters if you total the car or want to trade out early.
How Much Does the Interest Rate Matter?
Less than most people expect on the monthly payment, and more than most people expect on the total. Same $30,000 over 60 months:
| APR | Monthly payment | Total interest |
|---|---|---|
| 3% | $539 | $2,344 |
| 5% | $566 | $3,968 |
| 7% | $594 | $5,642 |
| 9% | $623 | $7,365 |
Each 2% costs you roughly $28 a month and about $1,700 over the life of the loan. That is why it pays to walk in with a pre-approval instead of taking the first rate the dealer offers.
How Car Loan Payments Are Calculated
The calculator uses the standard amortization formula that every auto lender uses:
payment = P × r ÷ (1 − (1 + r)−n)
P is the amount financed, r is your APR divided by 12, and n is the number of monthly payments. Every payment covers that month's interest first, and whatever is left pays down the balance. Early in the loan most of your money goes to interest, which is why paying extra in year one saves far more than paying extra in year five.
The result is an estimate. It does not include gap insurance, an extended warranty, or anything else rolled in at the finance desk, so get the out-the-door price in writing before you finance.
Can You Negotiate Auto Financing?
Yes, auto financing is negotiable, so here's how to do it. Get loan offers from any of the online lenders below and compare rates. Take the best of these with you to the dealership and ask the Finance Office if they can beat the interest rate.
