Auto Loan Calculator — Free 2026

A car is often the second-largest purchase people make, and how you finance it matters almost as much as the sticker price. This auto loan calculator turns the vehicle price, your down payment, any trade-in value, the interest rate, and the term into a clear monthly payment and total cost, so you can walk into the dealership knowing your numbers.

How the payment is calculated

Your loan amount is the vehicle price minus your down payment and trade-in value, plus any taxes and fees rolled in. That amount is amortized over your chosen term at your interest rate, producing a fixed monthly payment where early payments lean toward interest and later ones toward principal.

Why loan term is a trap for buyers

Dealers often advertise low monthly payments by stretching the term to 72 or 84 months. That lowers the payment but dramatically raises total interest and increases the risk of being “upside down” — owing more than the car is worth — for years, since cars depreciate faster than long loans pay down.

A worked example

On a $35,000 car with $5,000 down at 7% over 60 months, you finance $30,000 and pay about $594 a month, with roughly $5,600 in total interest. Stretch it to 84 months and the payment falls to about $453, but total interest jumps to roughly $8,000 — and you owe on the car far longer.

Tips for a better car loan

• Get pre-approved by your bank or credit union so you can negotiate as a cash buyer and compare the dealer's rate.
• Keep the term to 60 months or less to limit interest and stay right-side-up on the loan.
• Negotiate the vehicle price separately from the monthly payment — focus on total cost, not the monthly number.
• A larger down payment reduces interest and lowers your risk of owing more than the car is worth.

Loan length: lower payment, higher cost

Longer auto loans have become common because they shrink the monthly payment, but the interest bill grows quickly. Here is a $35,000 loan at 6.5% APR over five different terms:

Stretching from 60 to 84 months lowers the payment by $165 but adds about $2,570 in interest. There is also a hidden cost: cars depreciate fastest in the first few years, so on a long loan you can owe more than the car is worth for much of the term. That negative equity becomes a problem if the car is totaled or you want to trade it in early.

Your credit score changes the price

Auto loan rates vary widely by credit tier and by whether the car is new or used. The same $35,000, 60-month loan at different rates shows why improving your score or shopping lenders is worth the effort:

Smart auto-financing habits

• Get pre-approved by a bank or credit union before visiting the dealer, so you can compare the dealer’s offer against a real number.
• Negotiate the out-the-door price first, then discuss financing. Focusing on the monthly payment makes it easy to hide a longer term or add-ons.
• Aim for a down payment of around 20% on a new car to reduce the risk of owing more than it is worth.
• A popular guideline is to keep total car costs, including insurance and fuel, under about 15% of take-home pay.
• Read the fine print on add-ons such as extended warranties and GAP coverage, and buy them only if you understand the value.

New, used, or keep what you have?

The monthly payment is only part of a car’s cost. A new car often loses a large share of its value in the first few years, while a reliable two- or three-year-old model has already absorbed that drop, though used-car loan rates are usually somewhat higher. Keeping a paid-off car running is frequently the cheapest option of all, even with occasional repairs: a $1,500 repair bill is still less than three months of payments on the 60-month loan above. Before you sign, compare total cost of ownership, including insurance, fuel, maintenance, and depreciation, not just the loan.