Car Loan Calculator

This car loan calculator shows you the number dealers hope you won't check: what your car will really cost per month and in total interest before you sign anything. Enter the vehicle price, your down payment, the APR, and the term, and you'll see the full picture in seconds.

What's a fair payment on a $35,000 car? Is a 72-month loan a trap? Should you take 0% financing or the cash rebate? This page answers all of it with real 2026 numbers, not vague rules of thumb.

Not sure a loan is the right question yet? Start with our Car Affordability Calculator to set your price ceiling, compare the decision entirely with Lease vs. Buy, or see the full five-year picture with Total Cost of Ownership. All of our auto calculators are free.

Auto & Vehicle Calculators

What Is a Car Loan Calculator?

A car loan calculator is a tool that estimates the monthly payment and total interest cost of financing a vehicle. It uses the standard amortization formula, so the result matches what a bank or dealer quotes for the same loan amount, APR, and term - before add-ons.

Why does this matter? Because dealers negotiate on monthly payment, which hides the true cost. A payment can drop while the total cost climbs, simply by stretching the term.

Run the numbers yourself first and that trick stops working. You'll walk in knowing exactly what a fair offer looks like and what an extra year of payments actually costs you.

What Do the Car Loan Calculator's Inputs Mean?

Each input moves your payment in a predictable way. Here's what they mean and how much they matter.

• Vehicle Price - the negotiated price before taxes and fees, not the sticker. Every $1,000 you negotiate off saves roughly $19.51 per month on a 60-month loan at 6.39%.
• Down payment - cash paid upfront. A common guideline is around 20% on new cars and 10% on used ones; more down means less borrowed, less interest, and less risk of owing more than the car is worth.
• Trade-in value - what the dealer credits for your current car. In most US states, a trade-in also reduces the amount of the sale that's taxed, which is a double win.
• Interest rate (APR) - the annual cost of borrowing, including certain fees. In Q1 2026, the average was 6.39% for new cars and 11.43% for used ones, per Experian — and your credit score swings it from 4.55% (super prime) to over 16% (deep subprime).
• Loan term - the repayment length in months, typically 36 to 84. Longer terms shrink the payment but grow total interest; the average new-car loan now runs about 69 months.
• Sales tax and fees - state sales tax, title, and registration. Roll them into the loan and you pay interest on them too.

How Do I Use This Car Loan Calculator?

For example, a $35,000 car with $7,000 down at 6.39% for 60 months shows a payment of $546.41 per month with $4,784.64 in total interest.

How Is a Car Loan Payment Calculated?

Car loans use the amortizing loan formula - the same math behind mortgages:

M = P × [ r(1 + r)^n ] / [ (1 + r)^n − 1 ]

Where:

- M = monthly payment
- P = amount financed (price − down payment − trade-in, plus taxes and fees if rolled in)
- r = monthly interest rate (APR ÷ 12)
- n = number of monthly payments

Here's the full breakdown for a $20,000 loan at 6% APR over 48 months:

r = 0.06 ÷ 12 = 0.005
(1 + 0.005)^48 = 1.270489
M = 20,000 × [0.005 × 1.270489] / [1.270489 − 1]
M = 20,000 × 0.00635245 / 0.270489
M = 20,000 × 0.0234850
M = $469.70

Over 48 months you'd pay $22,545.63 in total - $2,545.63 of it interest. The calculator above runs this instantly for any combination of inputs.

Car Loan Examples: Four Real Scenarios

Example 1 - New car with a 20% down payment

Question

Maya negotiates a new SUV to $35,000 and puts $7,000 down (20%). Her credit union approves her at 6.39% APR - the Q1 2026 new-car average for 60 months. What will she pay?

Solution

The amortization formula applies, with P = 28,000; r = 0.0639 ÷ 12 = 0.005325; n = 60.

M = 28,000 × [0.005325 × (1.005325)^60] / [(1.005325)^60 − 1]
M = 28,000 × 0.00732333 / 0.375273
M = 28,000 × 0.0195147

Answer

M = $546.41 per month — $32,784.64 total, of which $4,784.64 is interest. That's $224 below the national average new-car payment, mostly thanks to the down payment. Check it yourself with the calculator above - no formula needed.

Example 2 - Used car with a trade-in and sales tax rolled in

Question

Dev buys a $22,000 used sedan and trades in his old car for $5,000. His state charges 7% sales tax on the price after the trade-in credit, and he finances everything at 11.43% - the Q1 2026 used-car average - for 48 months. How much does he finance, and what's the payment?

Solution

Taxable amount: 22,000 − 5,000 = $17,000. Sales tax: 17,000 × 0.07 = $1,190.

Amount financed: 17,000 + 1,190 = $18,190.

Then apply the formula with r = 0.1143 ÷ 12 = 0.009525; n = 48:

M = 18,190 × [0.009525 × (1.009525)^48] / [(1.009525)^48 − 1]
M = 18,190 × 0.01501360 / 0.576231
M = 18,190 × 0.0260548

Answer

M = $473.94 per month - $22,749.00 total, including $4,559.00 in interest. Notice the used-car rate nearly doubles the interest cost per dollar borrowed versus Example 1.

Example 3 - Working backward: how much car does $450 a month buy?

Question

Priya's budget caps her car payment at $450 per month. With near-prime credit, she's quoted 9.67% APR on a 60-month loan. What's the biggest loan she can afford?

Solution

Rearrange the formula to solve for P: P = M × [(1 + r)^n − 1] / [r(1 + r)^n], with r = 0.0967 ÷ 12 = 0.0080583; n = 60.

(1.0080583)^60 = 1.618601
P = 450 × 0.618601 / (0.0080583 × 1.618601)
P = 450 × 47.42700

Answer

P = $21,342 — add her down payment on top to get her maximum car price. If she improved her credit to prime territory (6.23%), the same $450 would stretch to roughly $23,100.

Example 4 - 0% APR or the $3,000 cash rebate?

Question

A dealer offers Sam two deals on a $40,000 truck: 0% APR for 60 months, or a $3,000 rebate if he takes outside financing at 5.99% for 60 months. Which is cheaper?

Solution

Option A (0%): 40,000 ÷ 60 = $666.67/month; total cost $40,000. No interest at all.

Option B (rebate): finance 40,000 − 3,000 = $37,000 at 5.99%:

M = 37,000 × [0.0049917 × (1.0049917)^60] / [(1.0049917)^60 − 1]
M = 37,000 × 0.0193282 = $715.14/month
Total cost: 715.14 × 60 = $42,908.50

Answer

The 0% offer wins by $2,908.50. The $3,000 rebate looks tempting, but $5,908.50 in interest swallows it. Flip the term to 36 months or drop the rate below ~3.4%, and the rebate math can reverse - run both offers in the calculator before you decide.

Together, these four scenarios cover most real buying situations: new with money down, used with a trade-in, budgeting backward, and choosing between incentives. For anything in between, the calculator above solves it faster than the formula.

Short vs. Long Car Loan Terms: Which Is Cheaper?

• Four inputs set your payment: amount financed, APR, term, and down payment.
• $28,000 at 6.39% for 60 months = $546.41/month.
• Every extra year of term lowers the payment but raises total interest.
• Compare 0% offers against rebates in dollars, never instincts.
• Your credit score is the single biggest lever on your APR.