Auto Loan Calculator
Monthly car payment from price, down payment, rate, and term.
Input sheet
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Car dealers love to negotiate on the monthly payment, not the price — which is how buyers end up overpaying. This shows the real monthly payment and, more importantly, the total interest a loan term costs you.
How it works
Amortizes the financed amount (price minus down payment) over the loan term at the monthly rate.
The payment amortizes the amount financed — vehicle price minus your down payment — over the loan term at the monthly rate. A longer term lowers the monthly payment but raises total interest and keeps you 'underwater' (owing more than the car is worth) for longer.
Note the down payment here is entered as a dollar amount, not a percentage. A larger down payment shrinks the financed balance directly, which lowers both the payment and the interest you pay over the life of the loan.
Monthly payment = financed × monthly rate × (1 + monthly rate)^months ÷ ((1 + monthly rate)^months − 1), where financed = price − down payment
Worked examples
$32,000 vehicle, $4,000 down, 7.5% rate, 5-year term → ≈ $561/mo, roughly $5,650 total interest
Financing $28,000 at 7.5% over 60 months gives about $561/month and roughly $5,650 in interest across the loan.
$45,000 truck, $6,000 down, 8% rate, 6-year term → ≈ $684/mo
The $39,000 financed over 72 months keeps the payment manageable but stretches interest cost well past a shorter term.
Tips & gotchas
- Negotiate the out-the-door price first, then talk financing — a low monthly payment on a stretched term often hides a high total cost.
- Keep the term to 60 months or less if you can; 72- and 84-month loans leave you owing more than the car is worth for years.
- Get pre-approved by your own bank or credit union before visiting the dealer — it gives you a rate to beat and removes pressure.
- A bigger down payment lowers your payment and reduces the risk of going underwater if the car depreciates faster than you pay it down.
FAQ
Why does a longer loan cost more even at the same rate?
More months means interest accrues on the balance for longer, so total interest rises even though each payment is smaller. The lower payment is convenience you pay for.
Should I take dealer financing or 0% APR offers?
A genuine 0% APR is excellent if you qualify, but it often requires forgoing a cash rebate — compare the rebate against the interest you'd save. Always check your own lender's rate too.
Does this include taxes, title, and fees?
No. Sales tax, registration, and dealer fees are usually rolled into the financed amount in practice — add them to the price field for a more realistic payment.
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