Car Loan Calculator
Calculate monthly car payments, total interest, and compare loan terms for new and used auto loans.
Calculate monthly car payments, total interest, and compare loan terms for new and used auto loans.
Calculate monthly car payments, total interest, and compare loan terms for new and used auto loans.
Calculate monthly car payments, total interest, and compare loan terms for new and used auto loans.
Monthly payment on an auto loan uses standard amortization: M = P × r × (1+r)^n / ((1+r)^n − 1), where P is the financed amount (price minus down payment minus trade-in), r is the annual interest rate divided by 12, and n is the term in months. For a $35,000 vehicle with $5,000 down at 5.9% over 60 months, the financed amount is $30,000 and the monthly payment is about $578.59.
Per the Experian State of Auto Finance Q4 2025 report, the average new-car APR is roughly 7.18% and the average used-car APR is 11.93%. Borrowers with 760+ FICO typically see new-car rates 100–200 basis points below average; subprime borrowers (FICO under 620) see rates of 15%+ on used vehicles. Manufacturer-incentive financing for top-tier credit can bring new-car rates below 5%.
Longer terms lower the monthly payment but increase total interest paid and the time you are underwater (owing more than the car is worth). A $30,000 loan at 5.9% costs $578.59 per month over 60 months ($34,715 total) but $497 per month over 72 months ($35,793 total) — saving $82 per month costs about $1,078 in extra interest. Aim for the shortest term you can afford, and never finance longer than the manufacturer's bumper-to-bumper warranty.
Financing sales tax adds the tax amount to your loan principal and you pay interest on it for the life of the loan. On an 8% sales tax in a state that allows financing of tax (most do), a $35,000 car adds $2,800 to the loan — at 5.9% over 60 months that adds $54 per month and roughly $440 in extra interest. If you have the cash to cover taxes at signing, doing so saves the interest; if not, financing it is the standard practice.
The interest rate is the cost of borrowing the principal, expressed as an annual percentage. APR (Annual Percentage Rate) adds origination fees, document fees, and certain other charges into the rate calculation to show the true cost of borrowing. For most auto loans the APR and rate are within 25 basis points of each other; for loans with high origination or dealer fees the gap can exceed 100 basis points. Always compare APR, not rate, when shopping lenders.