Key Takeaways
- • On a $35,000.00 vehicle with $7,000.00 (20%) down, you finance about $30,775.00 at 5.5% APR over 6 years, for a monthly payment of about $502.80.
- • The amount financed includes $2,275.00 in sales tax and $500.00 in fees.
- • Over the full 6-year term you'll pay $5,426.49 in interest (15% of total repayments), for a total of payments of $36,201.49. A shorter term or larger down payment lowers the interest you pay.
How to Use the Auto Loan Calculator
Our auto loan calculator helps you understand the true cost of financing a vehicle. Enter your vehicle price, down payment, interest rate, and loan term to see your monthly payment and total cost. You can also factor in trade-in value and sales tax for a complete picture.
The calculator shows you how much you'll pay in interest over the life of the loan, helping you compare different financing options and make an informed decision.
Scenario Comparison Feature
Compare multiple loan options side-by-side:
- • Save Scenario 1: Click "Save as Scenario 1" to lock in your current calculation
- • Modify Parameters: Adjust the interest rate, loan term, or down payment
- • Save Scenario 2: Click "Save as Scenario 2" to save your modified calculation
- • Visual Comparison: See payment differences, total cost differences, and savings at a glance
- • Example: Compare "6-year at 5.5%" vs "5-year at 6.2%" to see which saves more money
New vs. Used Car Financing
New Car Loans
- • Lower interest rates (typically 4-6%)
- • Longer loan terms available (up to 84 months)
- • Manufacturer incentives and special financing
- • Full warranty coverage
Used Car Loans
- • Higher interest rates (typically 5-9%)
- • Shorter loan terms (usually 36-60 months)
- • Lower purchase price
- • Faster depreciation already occurred
60-Month vs 72-Month Auto Loan: Which Is Better?
A shorter term means a higher monthly payment but far less interest; a longer term lowers the payment but costs you more overall. On a $30,000 loan at 6.5% APR, stretching from a 60-month to an 84-month loan drops the payment by about $142/month but adds roughly $2,200 in total interest. Here's how common terms compare:
| $30,000 loan at 6.5% APR | Monthly Payment | Total Interest | Total Paid |
|---|---|---|---|
| 36-month (3 yr) | $919 | $3,101 | $33,101 |
| 48-month (4 yr) | $711 | $4,150 | $34,150 |
| 60-month (5 yr) | $587 | $5,219 | $35,219 |
| 72-month (6 yr) | $504 | $6,309 | $36,309 |
| 84-month (7 yr) | $445 | $7,421 | $37,421 |
36-month (3 yr)
48-month (4 yr)
60-month (5 yr)
72-month (6 yr)
84-month (7 yr)
Principal & interest only on a $30,000 amount financed; excludes tax and fees. Adjust the loan term above to compare your own numbers.
How We Calculate Your Car Payment
We first work out the amount financed: vehicle price plus sales tax and fees, minus any cash rebate, down payment and net trade-in equity. Sales tax is applied to the price after the trade-in allowance (the trade-in tax credit most U.S. states offer), and if you still owe money on your trade-in that negative equity is rolled into the new loan.
Your monthly payment is then the standard amortization formula M = P · r(1+r)n / ((1+r)n − 1), where P is the amount financed, r is the monthly interest rate (APR ÷ 12), and n is the number of monthly payments (years × 12). Total interest is the sum of the interest portion of every scheduled payment.
These results are estimates for planning and education, not a loan offer or financial advice. Your actual APR and payment depend on your lender, credit profile, vehicle, and current market conditions. Tax and fee rules vary by state and dealer — confirm the exact figures with your lender and local DMV.
Example Calculation
A $35,000 car with $5,000 cash down and a $3,000 trade-in leaves $27,000 financed. At 7% APR over 5 years, that's about $535 a month.
- Vehicle price
- $35,000
- Down payment + trade-in
- $8,000
- Amount financed
- $27,000
- Interest rate
- 7% APR
- Term
- 5 years (60 months)
- Total interest
- ≈ $5,100
Illustrative example excluding sales tax and registration fees, which vary by location.
Auto Loan Calculator FAQs
How do I compare different auto loan scenarios?
Click "Save as Scenario 1" to save your current calculation, then adjust the parameters (interest rate, loan term, down payment) and click "Save as Scenario 2". You can save and compare up to 3 scenarios side-by-side to see payment differences, total cost differences, and find the best option for your budget.
What is a good down payment for a car?
A good down payment is 20% of the vehicle price. This helps you avoid being underwater on your loan and may qualify you for better interest rates.
How do I calculate car payments?
Car payments are calculated based on the loan amount (vehicle price minus down payment and trade-in, plus taxes), interest rate, and loan term using an amortization formula.
Should I lease or buy a car?
Buying is better if you drive more than 15,000 miles/year, want to own the vehicle, or plan to keep it long-term. Leasing offers lower monthly payments but you do not own the car.
Can I pay off my car loan early?
Yes, most auto loans allow early payoff without penalty. Check your loan agreement and consider making extra principal payments to save on interest.
What affects auto loan rates?
Auto loan rates are affected by your credit score, loan term, vehicle age (new vs used), down payment amount, and current market rates.
What is the average auto loan interest rate?
As of 2025, average new car loan rates range from 4-7% for borrowers with good credit (700+). Used car loans are typically 1-2% higher.