Auto Loan Calculator
The Auto Loan Calculator estimates your monthly car payment from the vehicle price, down payment, trade-in value, APR and loan term — with a full amortization breakdown so you can see exactly how much goes to interest.
What this means
Your monthly car payment is set by the amount you finance, the APR and the term. Cars depreciate quickly, so combining a large down payment with a shorter term keeps you from owing more than the car is worth.
How we calculate it
Formula
M = P × [ r(1 + r)^n ] / [ (1 + r)^n − 1 ] — where P is the financed amount (price − down payment − trade-in), r is the monthly rate and n is the number of months.Worked example
A $25,000 loan at 5% APR over 60 months:
- 1Monthly rate = 5% / 12 = 0.416667%
- 2Payment = $25,000 × [0.00416667 × (1.00416667)^60] / [(1.00416667)^60 − 1] ≈ $471.78
Important assumptions
- The APR is fixed for the full term.
- Down payment and trade-in reduce the financed amount at signing.
- Fees, taxes and dealer add-ons are not included unless added to the price.
Frequently asked questions
What is a good APR for a car loan?
Rates depend on your credit score, the term and current market conditions. Borrowers with excellent credit often qualify for lower rates; longer terms typically carry higher APRs.
Should I finance for 60 or 72 months?
A 72-month term lowers the monthly payment but adds interest and increases the chance of being upside-down on the loan. Choose the shortest term you can comfortably afford.
How much should I put down?
A down payment of at least 20% is a solid target for cars. It reduces interest, keeps payments manageable and offsets the rapid first-year depreciation.