Auto Loan Calculator
A common budgeting guideline is keeping your total car costs under about 15% of take-home pay — but that only works if you know the real monthly payment first. This calculator turns price, down payment, rate, and term into that number before you ever set foot at a dealership.
Enter your details to see your monthly payment.
How to use this calculator
- Enter the vehicle price and your down payment.
- Enter your interest rate and loan term in months.
- Click "Calculate my payment" to see your estimated monthly payment.
How the calculation works
Your loan amount is the vehicle price minus your down payment. That amount is then run through the same amortization formula used for any fixed-rate installment loan, splitting the total into equal monthly payments that cover both principal and interest over your chosen term — the same math behind a mortgage, just typically over a much shorter 36-84 month period instead of 15-30 years.
A worked example
Say you're financing a $32,000 car with a $4,000 down payment, leaving a $28,000 loan at 7% over 60 months. That works out to a monthly payment of roughly $554, with total interest of about $5,240 over the life of the loan. Stretch the same loan to 72 months instead, and the payment drops to around $478 — but total interest rises to nearly $6,400, a reminder that a lower payment isn't automatically the cheaper choice overall.
Frequently asked questions
Does this include taxes and fees?
No — this estimates principal and interest on the loan amount only. Sales tax, registration, and dealer fees would typically increase the amount financed.
What is a typical auto loan rate?
Rates vary significantly by credit score, lender, new vs. used vehicle, and term — shop multiple lenders for the most accurate rate for your situation.
Should I choose a longer term for a lower payment?
A longer term lowers your monthly payment but increases total interest paid and can leave you owing more than the car is worth for longer.
How much car can I actually afford?
A common rule of thumb keeps total car costs — payment, insurance, gas, and maintenance combined — under about 15-20% of your after-tax monthly income.
Does a trade-in work the same as a down payment?
Yes — a trade-in value effectively reduces the amount financed the same way a cash down payment does, lowering both your monthly payment and total interest.