Auto Loan Calculator: Car Payment Estimator
Use this auto loan calculator to estimate your car payment: enter the vehicle price, down payment, APR and loan term to see the monthly payment and total interest.
Car payment formula
Payment = L × r ÷ (1 − (1 + r)^−n)
L is the amount financed — vehicle price minus down payment and trade-in (plus any taxes and fees you roll into the loan) — r is APR ÷ 12 and n is the term in months.
Auto loan example
A $35,000 car with 10% down leaves $31,500 to finance. At 7% APR for 60 months:
- Monthly payment: $623.74
- Total repaid: about $37,420
- Total interest: about $5,920
Stretching to 72 or 84 months lowers the payment but adds interest and increases the risk of owing more than the car is worth (negative equity).
How to get a better car loan
- Get pre-approved by a bank or credit union before visiting the dealer, so you can compare dealer financing.
- Negotiate the price first, then the financing — not the monthly payment.
- Watch add-ons such as extended warranties and gap insurance that inflate the loan.
- Follow the 20/4/10 guideline: 20% down, no more than 4 years, total car costs under 10% of gross income.
- Budget ownership costs: insurance, fuel, maintenance and registration.
Read our full car loan guide and how to compare loans before you sign.
Frequently Asked Questions
What is a good APR for a car loan?
Rates depend on your credit score, the loan term and whether the car is new or used. Borrowers with excellent credit get the lowest rates; compare credit unions, banks and dealer financing.
How long should a car loan be?
Shorter terms such as 36–60 months cost less in total interest and reduce the risk of owing more than the car is worth.
How much should I put down on a car?
A down payment of around 10–20% lowers your payment and helps you avoid negative equity as the car depreciates.
This content is for general information only and is not investment advice. Consider your own situation and consult a licensed professional before making financial decisions.