Car Loan Calculator
Calculate your monthly car payment, total interest, and true cost of financing a vehicle. Includes trade-in and down payment options.
Monthly Payment
$0.00
How to Use the Car Loan Calculator
Enter the vehicle price, down payment, trade-in value, sales tax rate, interest rate, and loan term. The calculator computes your financed amount (price โ down โ trade-in + tax) and shows your monthly payment, total interest, and true cost of ownership.
Car Loan Formula
Financed = Price โ Down โ Trade-In + (Price ร Tax%) Then: Monthly Payment = Financed ร r ร (1+r)โฟ / ((1+r)โฟ โ 1) where r = monthly rate, n = months.
Frequently Asked Questions
- Monthly payment = Financed amount ร r ร (1+r)โฟ / ((1+r)โฟ โ 1). Financed amount = Vehicle price โ down payment โ trade-in value + sales tax. Example: $30,000 car, $3,000 down, 6% rate, 60 months = approximately $522/month.
- Total car loan interest = (Monthly payment ร number of months) โ amount financed. For a $25,000 loan at 7% over 60 months: $495/month ร 60 = $29,700 total โ $25,000 = $4,700 total interest. Shorter terms save significant interest.
- As of 2026, good car loan rates are approximately: 750+ credit score: 5.5โ6.5%; 700โ749: 6.5โ8.5%; 650โ699: 9โ13%; below 650: 15%+. Rates also vary by lender, loan term, and whether the car is new or used (used cars typically have higher rates).
- Trade-in value is determined by the dealer based on your car's make, model, year, mileage, and condition. To get a fair estimate, check Kelley Blue Book (KBB), Edmunds, or CarMax. Always get multiple offers โ dealers may offer less than market value.
- Financial experts recommend 48 months or less for used cars and 60 months or less for new cars. Loans of 72โ84 months have lower payments but significantly more interest and put you at risk of being underwater (owing more than the car is worth).
- Payoff amount = Outstanding principal balance + accrued interest. Call your lender or check online banking for the exact figure. The payoff amount includes interest accrued since your last payment and may differ slightly from your current balance.
- GAP (Guaranteed Asset Protection) insurance covers the difference between what you owe on your car loan and what your car is worth if it's totaled or stolen. It's especially important for long-term loans and if you put little to no money down, since cars depreciate quickly.
- To get a lower rate: (1) improve your credit score before applying; (2) get pre-approved from a bank or credit union before visiting a dealer; (3) make a larger down payment; (4) choose a shorter loan term; (5) consider a co-signer with better credit.
- A larger down payment directly reduces the amount financed, which lowers your monthly payment and total interest. Example: on a $30,000 car at 7% for 60 months โ $0 down: $594/mo; $5,000 down: $495/mo; $10,000 down: $396/mo.
- True cost = Sticker price + sales tax + financing interest + fees (dealer, registration, title). A $30,000 car financed at 7% for 72 months could easily cost $36,000โ$38,000 total. Paying cash or a large down payment significantly reduces this.