Auto Loan Calculator
Use this auto loan calculator to find out your monthly car payment before you step into a dealership. Enter the vehicle price, down payment, trade-in value, interest rate, and loan term — and see your exact monthly payment, total interest, and the true total cost of your vehicle.
Educational estimate. Calculator results are for planning and information only, not financial, tax, medical, legal, or engineering advice. Verify important decisions with official sources or a qualified professional.
Auto Loan Calculator
Monthly Car Payment & Total Cost
📐 Formula & Method
Monthly Car Payment
Where L = loan amount (vehicle price − down payment − trade-in), r = monthly APR (annual rate ÷ 12 ÷ 100), n = loan term in months.
Total Interest & Cost
Your total cost of financing is monthly payment multiplied by total number of payments. The difference between that and the original loan amount is the total interest paid.
📋 How to Use
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1
Enter the vehicle's purchase price (the negotiated price, not MSRP).
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2
Enter your down payment — aim for at least 10-20% of the vehicle price.
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3
Enter your trade-in value if you're trading a vehicle (check Kelley Blue Book or Autotrader for estimates).
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4
Enter the APR (Annual Percentage Rate) from the lender or dealer.
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5
Select your loan term — 60 months is the most common; longer terms lower payments but increase total interest.
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6
Click Calculate to see your monthly payment, total interest, and full cost.
How to Get the Best Auto Loan Rate
The monthly payment on an auto loan depends on four things: the loan amount, the interest rate (APR), and the loan term. On a $27,000 loan (after $5,000 down on a $32,000 car) at 6.5% APR over 60 months, you'd pay $528/month, $4,680 in total interest, and $31,680 in total — $4,680 more than the loan amount.
Your APR depends primarily on your credit score. In 2024, average new car APRs range from about 5.3% for excellent credit (750+) to 15%+ for poor credit (below 600). Even a 2% difference in APR on a $25,000 loan over 60 months costs an extra $1,300 in interest. Improving your credit score before financing can save thousands.
Longer loan terms (72-84 months) reduce your monthly payment but significantly increase total interest — and put you at risk of being "underwater" (owing more than the car is worth). Cars depreciate 15-25% in their first year and 50%+ over five years. A shorter loan term builds equity faster and reduces the risk of owing more than the car is worth.
In the UK, most car financing is arranged through Personal Contract Purchase (PCP), Hire Purchase (HP), or personal loans. With PCP, you pay lower monthly payments but don't own the car at the end (there's an optional "balloon payment"). HP works like a traditional loan where you own the car at the end. UK car finance is regulated by the FCA.
🔬 Methodology & Accuracy
Formula: Uses the standard mathematical formula shown in the Formula & Method section above. All computations run client-side in your browser — no data is sent to our servers.
Data sources: Tax bands, contribution limits and regulatory rates are taken from official US (IRS, SSA) and UK (HMRC, gov.uk) publications for the current tax year, and updated when bands change.
Last reviewed: June 2026 · Accuracy: Results are precise to two decimal places using IEEE-754 double-precision arithmetic. Intended for educational and planning use only.
For informational purposes only. Results are estimates based on the inputs and formulas provided. For financial, tax, medical, or legal decisions, consult a qualified professional. Rates and regulations change — always verify current figures with official sources.