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Auto Loan Calculator

Calculate monthly payments for your car loan. See how down payment, interest rate, and loan term affect the total cost of your vehicle.

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Calculator

Monthly Payment

$573.03

Total Payment

$34,382.09

Total Interest

$4,382.09

How It Works

An auto loan helps you finance the purchase of a vehicle. Your monthly payment depends on the amount financed (car price minus down payment), the interest rate, and the loan term.

New car loans typically have lower rates than used car loans. Making a larger down payment reduces your loan amount and may qualify you for better interest rates.

Remember that cars depreciate quickly — a new car loses about 20% of its value in the first year. Consider this when deciding how much to finance and for how long.

The Formula

M = P × [r(1+r)^n] / [(1+r)^n - 1]

M = Monthly payment, P = Loan amount (car price minus down payment), r = Monthly interest rate, n = Total months

Example

Scenario: You buy a car for $35,000 with $5,000 down, financing $30,000 at 5.5% for 5 years.

Result: Your monthly payment would be $573. Over 5 years, you'd pay $34,367 total, including $4,367 in interest.

Tip: A larger down payment of $10,000 would reduce the monthly payment to $478 and save $1,140 in interest.

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Frequently Asked Questions

What is a good auto loan rate in 2026?
New car loan rates range from 3% to 10% depending on credit scores. Borrowers with excellent credit (740+) can often qualify for rates under 5% on new cars.
How long should my auto loan be?
Shorter terms (36-48 months) have higher payments but less total interest. Longer terms (60-72 months) have lower payments but cost more. Avoid terms over 72 months unless necessary.
Should I finance through the dealer or a bank?
Compare offers from both. Dealers often have promotional rates on new cars, while credit unions and banks may offer better rates on used cars or for borrowers with excellent credit.
What happens if I pay off my auto loan early?
Most auto loans allow early payoff without penalties, but check your contract. Paying off early saves on future interest and frees up your monthly cash flow.
Can I negotiate the interest rate?
Yes! Interest rates are negotiable. Your rate depends on your credit score, the car's age, loan term, and the lender. Getting pre-approved from multiple lenders gives you negotiating power.