Estimate your monthly car payment on a new or used vehicle. This free car loan calculator factors in your down payment, trade-in, sales tax and interest rate to show your monthly payment, total interest and the true cost of financing the car.
Car & loan
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Monthly payment
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Enter a car price and interest rate
Loan amount
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Sales tax
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Total interest
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Total of payments
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Results update automatically as you type. Estimates only — confirm exact figures with your lender or dealer.
Use this free car loan calculator to estimate your monthly payment on a new or used car. Enter the price, your down payment and trade-in, the interest rate and the term, and instantly see your payment, total interest and the full cost of the loan.
What this car loan calculator shows you
A car loan calculator works out your monthly payment from the car price, down payment, trade-in, sales tax, interest rate and loan length. It also shows the amount you finance, the total interest and the total of all payments, so you can see what a car really costs once interest is added.
Running the numbers before you shop keeps you focused on the total cost, not just a monthly figure a salesperson can stretch to fit any budget.
New vs used car loans
The same calculator works for both, but the numbers behind them differ. Used-car loans usually carry higher interest rates and shorter terms than new-car loans, because older vehicles depreciate faster and are riskier for lenders.
New car
Used car
Typical rate
Lower
Higher
Common terms
up to 72–84 months
36–60 months
Depreciation
Fast in year one
Already absorbed
Manufacturer deals
Often available
Rare
How to use the car loan calculator
Enter the car price. The agreed price of the new or used vehicle.
Add your down payment and trade-in. Both lower the amount you finance.
Enter the interest rate and sales tax. Use the APR you’ve been quoted and your local tax rate.
Pick a loan term. 36, 48, 60 or 72 months.
Read your result. Your monthly payment and total interest update instantly.
How car loan payments are calculated
Your monthly car payment is based on the amount you finance, using the amortization formula:
M = P × [ r(1 + r)n ] ÷ [ (1 + r)n − 1 ]
Where P is the amount financed (price + sales tax − down payment − trade-in), r is the monthly rate (APR ÷ 12 ÷ 100), and n is the number of months. Each payment covers interest first, with the rest reducing your balance.
Car loan example
Say you finance a $28,000 used car with $4,000 down, 6% sales tax, a 7.5% APR and a 60-month term:
Detail
Amount
Sales tax
$1,680
Amount financed
$25,680
Monthly payment
$515
Total interest
$5,194
Total of payments
$30,874
How the term changes your payment
Stretching the loan lowers the monthly figure but you pay much more interest. Here’s that same $25,680 loan at 7.5% across terms:
Term
Monthly
Total interest
36 months
$799
$3,077
48 months
$621
$4,124
60 months
$515
$5,194
72 months
$444
$6,289
How to get a lower car loan rate
Check your credit score first. The best advertised rates go to buyers with strong credit.
Get pre-approved by a bank or credit union. Then let the dealer try to beat it.
Keep the term shorter. Shorter loans usually come with lower rates and far less interest.
Put more down. A bigger down payment can improve the rate you’re offered.
Consider refinancing later if your credit improves or rates fall after you buy.
Car loan terms glossary
Term
What it means
APR
Annual percentage rate — the yearly cost of the loan including most fees.
Amount financed
The loan size after down payment, trade-in and added sales tax.
Depreciation
How much value a car loses over time, fastest in the first year.
Gap insurance
Covers the difference if your car is totaled while you owe more than it’s worth.
Refinance
Replacing your current car loan with a new one at a better rate.
Pre-approval
A lender’s conditional loan offer before you choose a car.
Car Loan Calculator FAQ
How do I calculate a car loan payment?
Your payment uses the amortization formula M = P × r(1 + r)n ÷ ((1 + r)n − 1), where P is the amount financed (price plus sales tax, minus down payment and trade-in), r is the monthly rate (APR ÷ 12), and n is the term in months.
Are used car loan rates higher than new car rates?
Usually, yes. Used cars depreciate faster and are riskier for lenders, so used-car loans tend to carry higher interest rates and shorter terms than new-car loans, which often come with manufacturer financing deals.
What credit score do I need for a good car loan?
The lowest advertised rates generally go to buyers with credit scores in the prime range (around 700+). Lower scores can still get approved, but at higher interest rates, so improving your score before applying can save a lot.
Can I refinance a car loan?
Yes. If your credit improves or interest rates drop after you buy, refinancing replaces your loan with a new one at a better rate, which can lower your monthly payment or total interest.
What is a good down payment on a car?
A common guideline is about 20% down on a new car and 10% on a used car. A bigger down payment reduces the amount you finance, your monthly payment and the total interest.
Do I need gap insurance?
Gap insurance is worth considering if you make a small down payment or choose a long term, because it covers the difference if your car is totaled while you owe more than it's worth.
Is the car loan calculator free to use?
Yes, this car loan calculator is completely free, needs no sign-up, and gives instant results directly in your browser.
