Auto Loan Calculator
Monthly payments | Interest breakdown | Amortization
| Year | Principal Paid | Interest Paid | Remaining Balance |
|---|---|---|---|
| Year 1 | $5,473 | $1,238 | $24,527 |
| Year 2 | $5,725 | $987 | $18,802 |
| Year 3 | $5,988 | $724 | $12,814 |
| Year 4 | $6,263 | $448 | $6,551 |
| Year 5 | $6,551 | $161 | $0 |
Auto Loan Calculator: Monthly Payment, Interest & Amortization Schedule Tool
This auto loan calculator estimates your monthly car payment, total loan cost and interest when you finance a vehicle. Enter the vehicle price, down payment, trade-in value, interest rate and loan term, and you get an instant payment, a chart of principal versus interest, the payoff date and a full amortization schedule that shows how your balance falls over time.
Quick answer: a $35,000 car with $5,000 down at 4.5% over 5 years means you finance $30,000. The monthly payment is about $559 and the total interest is about $3,557. Use it whether you are buying a new car, a used car or comparing offers from banks and lenders.
How Your Monthly Car Payment Is Calculated
The amount you borrow is the vehicle price minus your down payment and trade-in value. The payment is then found with the standard amortization formula, where r is the annual rate divided by 12 and n is the number of monthly payments.
Each payment covers the interest that built up on the balance, and the rest reduces what you owe. Early in the loan the balance is high, so more of the payment is interest. The schedule below the chart shows this split for every year.
Auto Loan Term Comparison
A longer term lowers the monthly payment but costs more interest. This table shows a $30,000 loan at 4.5% for different terms.
| Loan term | Monthly payment | Total interest |
|---|---|---|
| 3 years | $892.41 | $2,127 |
| 4 years | $684.10 | $2,837 |
| 5 years | $559.29 | $3,557 |
| 6 years | $476.22 | $4,288 |
| 7 years | $417.00 | $5,028 |
How Down Payment, Trade-In and Interest Rate Affect Your Loan
A larger down payment or a trade-in reduces the amount you finance, which lowers both the payment and the total interest. A lower rate does the same, and your rate depends on your credit score, the lender, the loan term and whether the car is new or used. If you already have a car loan and rates have dropped, the refinance calculator can show whether a new loan would save money, and the amortization calculator lets you explore any fixed-rate loan in more detail.
How Much Car Can You Afford?
A common rule of thumb is the 20/4/10 guideline: put down at least 20 percent, finance for no more than 4 years, and keep your total monthly car costs, including the payment, insurance and fuel, under about 10 percent of your gross income. It is a starting point rather than a rule, so adjust it to your own budget. To compare other kinds of borrowing, try the loan calculator or the payment calculator.
What This Calculator Doesn't Include
It calculates principal and interest only. Sales tax, registration, dealer and documentation fees, insurance and add-ons are not included, so add any amounts you plan to finance to the vehicle price. The rate shown as the effective annual rate is the entered rate compounded monthly, not an APR with fees. Results are estimates for general information and are not financial advice, and your lender's figures may differ slightly.
Who Should Use an Auto Loan Calculator?
It is useful for buyers financing a new or used car, people refinancing an existing loan, dealers and sales professionals, financial planners and advisors, students learning personal finance and anyone comparing car loan offers from banks, credit unions and dealerships.
How to Use This Auto Loan Calculator
Enter the vehicle price
Type it in or drag the slider.
Add your down payment and trade-in
Both reduce the amount you finance. Enter 0 if you have none.
Set the interest rate
Use the rate offered by your lender.
Select the loan term
Choose the number of years.
Click "Calculate Payment"
See the monthly payment, total interest, total payment, payoff date, chart and amortization schedule.