CalcPick

Auto Loan Calculator

Estimate your monthly car payment with trade-in value, down payment, and loan terms. See the total interest and a full amortization schedule.

$

The full purchase price of the vehicle

$

The amount you pay upfront

$

The value of your current vehicle as trade-in

%

Annual percentage rate

mo

Length of loan in months

Common Loan Terms

Your Auto Loan Summary

Monthly Payment

$573.03

60 months at 5.5% APR

Total Interest

$4,382.09

14.6% of loan amount

Total Cost

$39,382.09

Including down payment & trade-in

Loan Amount

$30,000.00

$35,000.00 - $5,000.00 - $0.00

Payment Breakdown

Principal vs Interest

Remaining Balance

Amortization Schedule

#PrincipalInterestBalance
1$435.53$137.50$29,564.47
2$437.53$135.50$29,126.93
3$439.54$133.50$28,687.40
4$441.55$131.48$28,245.85
5$443.57$129.46$27,802.27
6$445.61$127.43$27,356.66
7$447.65$125.38$26,909.01
8$449.70$123.33$26,459.31
9$451.76$121.27$26,007.55
10$453.83$119.20$25,553.72
11$455.91$117.12$25,097.80
12$458.00$115.03$24,639.80

How Does an Auto Loan Calculator Work?

An auto loan calculator uses the standard amortization formula to determine your monthly car payment. It takes into account the vehicle price, your down payment, any trade-in value, the loan term (in months), and the annual interest rate (APR). By subtracting your down payment and trade-in value from the vehicle price, the calculator determines the principal loan amount.

The monthly payment is then calculated using the formula:

M = P × [r(1 + r)n] / [(1 + r)n - 1]

Where M = monthly payment, P = principal, r = monthly interest rate, n = number of payments

Each monthly payment is split between principal and interest. In the early months, a larger portion goes toward interest. As you pay down the principal, more of each payment goes toward reducing the balance. The amortization schedule above shows this breakdown for every month of your loan.

Tips for Getting the Best Auto Loan

  • Check your credit score before applying. A higher score qualifies you for lower interest rates.
  • Compare offers from banks, credit unions, and dealerships to find the best rate.
  • Choose a shorter loan term if you can afford higher monthly payments -- you will pay significantly less in total interest.
  • Put at least 20% down on a new vehicle to avoid negative equity and reduce your loan amount.
  • Consider the total cost, not just the monthly payment. A longer term has lower payments but much higher total interest.

Frequently Asked Questions

How is my monthly auto loan payment calculated?

Your monthly auto loan payment is calculated using the loan amount (vehicle price minus down payment and trade-in value), the annual interest rate divided by 12 for the monthly rate, and the total number of monthly payments. The standard amortization formula ensures each payment covers both principal and interest, with early payments weighted more toward interest.

What is a good interest rate for an auto loan?

A good auto loan interest rate depends on your credit score, the loan term, and whether the vehicle is new or used. As of 2024, rates for new cars with excellent credit can range from 3% to 6%, while used car rates tend to be 1-2% higher. Shorter loan terms generally come with lower interest rates.

Should I make a larger down payment on my car?

A larger down payment reduces your loan amount, which lowers your monthly payment and the total interest you pay over the life of the loan. Experts recommend putting at least 20% down on a new car and 10% on a used car to avoid being upside down on the loan (owing more than the car is worth).

How does trade-in value affect my auto loan?

Your trade-in value is subtracted from the vehicle price before calculating the loan amount, similar to a down payment. A higher trade-in value means a smaller loan, lower monthly payments, and less total interest paid. Be sure to research your trade-in vehicle's market value to negotiate the best deal at the dealership.