Auto Loan Calculator

Calculate your auto loan payments, total interest, and financing costs. Compare different loan terms and get accurate results with current auto loan rates.

Auto Loan Calculator

Calculate your auto loan payments and total financing costs for United States

Country

Vehicle Price (USD)

Down Payment (USD)

Annual Interest Rate (%)

Loan Term

How to Calculate Auto Loan Payments

Quick Answer: Your monthly auto loan payment depends on the loan amount (vehicle price minus down payment), interest rate, and loan term. For a $25,000 loan at 4.5% for 60 months, your monthly payment would be approximately $466.

The calculation uses the standard loan payment formula. A larger down payment reduces your loan amount and monthly payments. Shorter loan terms mean higher monthly payments but less total interest paid.

Auto Loan Payment Formula

Understanding how auto loan payments are calculated

The Auto Loan Formula

M = P [ r(1 + r)^n ] / [ (1 + r)^n – 1 ]

Where:

M = Monthly payment
P = Principal (loan amount = vehicle price - down payment)
r = Monthly interest rate (annual rate ÷ 12)
n = Total number of payments (loan term in months)

Step-by-Step Example:

Vehicle Price: $30,000

Down Payment: $5,000

Loan Amount: $25,000

Annual Interest Rate: 4.5%

Loan Term: 60 months

Step 1: Convert annual rate to monthly rate

r = 4.5% ÷ 12 = 0.375% = 0.00375

Step 2: Number of payments

n = 60 months

Step 3: Apply the formula

M = $25,000 × [0.00375 × (1.00375)^60] / [(1.00375)^60 - 1]

M = $25,000 × 0.01863 = $465.69

Auto Loan Term Comparison

How loan term affects your payments and total cost

Loan Term	Monthly Payment	Total Interest	Total Cost	Interest Savings
36 months	$737.35	$1,544.54	$26,544.54	-
48 months	$572.73	$2,491.04	$27,491.04	$946.50 more
60 months	$465.69	$3,941.40	$28,941.40	$2,396.86 more
72 months	$397.68	$5,632.96	$30,632.96	$4,088.42 more

*Based on $25,000 loan at 4.5% APR. Comparison shows cost difference vs. 36-month term.

Down Payment Impact

How down payment affects your auto loan

$0 Down

$559.15

Monthly payment

$3,000 Down

$503.23

Monthly payment

$6,000 Down

$447.31

Monthly payment

$9,000 Down

$391.38

Monthly payment

*Based on $30,000 vehicle price, 4.5% APR, 60-month term

Frequently Asked Questions

Common questions about auto loan calculations

How is my auto loan payment calculated?

Auto loan payments are calculated using the standard loan formula: M = P [ r(1 + r)^n ] / [ (1 + r)^n – 1 ], where M is the monthly payment, P is the loan amount (vehicle price minus down payment), r is the monthly interest rate, and n is the number of payments.

What's a good down payment for a car loan?

A good down payment is typically 10-20% of the vehicle's price. For new cars, 20% is recommended, while used cars may require 10-15%. A larger down payment reduces your loan amount, monthly payments, and total interest paid.

What auto loan term should I choose?

Common auto loan terms range from 24 to 84 months. Shorter terms (36-48 months) have higher monthly payments but lower total interest. Longer terms (60-72 months) have lower monthly payments but higher total interest. Choose based on your budget and how long you plan to keep the car.

What interest rate can I expect on an auto loan?

Auto loan rates vary based on your credit score, loan term, vehicle age, and lender. As of 2025, rates typically range from 3-8% for new cars and 4-12% for used cars. Higher credit scores (750+) qualify for the best rates.

Should I finance through a dealer or bank?

Compare offers from both. Dealers may offer promotional rates or incentives, but banks and credit unions often have competitive rates. Get pre-approved from multiple lenders to negotiate the best deal.

How much car can I afford?

Follow the 20/4/10 rule: 20% down payment, no more than 4-year loan term, and total monthly vehicle expenses (payment, insurance, maintenance) should not exceed 10% of gross monthly income.

What's the difference between APR and interest rate?

The interest rate is the cost of borrowing money. APR (Annual Percentage Rate) includes the interest rate plus additional fees and costs, giving you the true cost of the loan. Always compare APRs when shopping for loans.

Can I pay off my auto loan early?

Yes, most auto loans allow early payoff without penalties. Paying extra principal reduces total interest and shortens the loan term. However, check your loan agreement for any prepayment penalty clauses.