Car Loan Calculator
Enter the vehicle price, down payment, trade-in, interest rate, and loan term to see your exact monthly payment and total interest.
The sticker price is just the beginning. Interest on a typical 60-month car loan adds $3,000–$6,000 to the real cost. Know the number before you sign.
$735
Average monthly new car payment in the US — up significantly from pre-2020 levels
68 mo
Average loan term for new vehicles — the drift toward longer terms increases total interest paid
~7%
Approximate average APR for new car loans in 2026 for borrowers with good credit
What dealers don't volunteer about your car loan
Monthly payment is only one number. Here are the three that actually matter.
Longer terms cost more — always
Stretching a car loan from 48 to 72 months reduces your monthly payment but adds thousands in total interest. On a $28,000 loan at 7% APR, the difference between 48 and 72 months is over $1,500 in extra interest. Run the numbers before choosing convenience.
Down payment cuts both payment and interest
A larger down payment reduces the principal — which reduces both the monthly payment and total interest over the life of the loan. It also improves your loan-to-value ratio, which can qualify you for a lower APR. Aim for at least 10–20% down on a new vehicle.
Your trade-in is a silent down payment
Many buyers focus on the new car's price and forget that their trade-in is effectively cash. A $6,000 trade-in reduces your loan principal by $6,000 — the equivalent of a $6,000 down payment. Negotiate the trade-in value and purchase price separately to maximise both.
How the Car Loan Calculator Works
Formula
Loan Amount = Vehicle Price − Down Payment − Trade-In
r = Annual Interest Rate / 100 / 12 (monthly rate)
n = Loan Term (months)
Monthly Payment = Loan × [r × (1+r)^n] / [(1+r)^n − 1]
Total Interest = (Monthly Payment × n) − Loan Amount
Total Cost = (Monthly Payment × n) + Down Payment + Trade-InEnter the vehicle price
The agreed purchase price, not MSRP. Negotiate the price first, then discuss financing.
Add down payment and trade-in
Both reduce the loan principal. The trade-in value shows as a separate line on the deal sheet.
Set the APR and term
Get a pre-approval from a bank or credit union before visiting the dealer — it gives you a rate benchmark.
Read the three outputs
Monthly payment, total interest paid, and the true total cost of the vehicle over the life of the loan.
Car dealers are highly skilled at focusing your attention on the monthly payment while obscuring the total cost. A dealer who stretches your loan from 60 to 72 months drops your monthly payment by ~$80 — but adds over $1,000 in total interest and keeps you underwater on the loan longer.
The best position to negotiate from: get pre-approved at your bank or a credit union before you go to the dealer. Walk in with a rate in hand. The dealer can then try to beat it — or you use your pre-approval. This separates the purchase price negotiation from the financing negotiation.
Frequently Asked Questions
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