Auto Loan Calculator

Your monthly payment, total interest, and what stretching the term actually costs.

What the term really costs

Same car, same rate — only the length changes:

TermMonthly paymentTotal interestvs 48 mo

A longer term always lowers the payment and raises the cost. It also keeps you underwater longer — owing more than the car is worth.

How the math works

amount financed = price + sales tax + fees − down payment − trade-in

That amount is amortized over the term at your APR, so each payment covers the interest accrued that month first, with the remainder reducing principal.

Want the full picture beyond the loan? Run the True Cost to Own Calculator — financing is only one of six ownership costs. Not sure this price fits your income? Check Car Affordability.

Estimates only. Actual APR depends on credit, lender, and term; tax and fee rules vary by state. General information, not financial advice.

Frequently asked questions

How is a car payment calculated?

Your payment is based on the amount financed — the price plus sales tax and fees, minus your down payment and trade-in — spread across the loan term at your APR. Because it is an amortizing loan, early payments are mostly interest and later ones mostly principal.

Is a 72 or 84 month car loan a bad idea?

It lowers the payment and raises the cost. Long terms also keep you underwater — owing more than the car is worth — for years, which is a real problem if the car is totaled or you need to sell. Compare the 48, 60, and 72 month rows above: the payment falls, the total interest climbs.

Does a bigger down payment save money?

Yes, twice over. It reduces the amount you finance, so you pay less interest, and it protects you from being underwater early in the loan. Twenty percent down is the traditional guideline for exactly this reason.

Should I include sales tax in the loan?

Most buyers finance it, which is why it is included in the amount financed here. Just be aware you then pay interest on the tax for the life of the loan — paying it in cash at signing avoids that.