Auto Loan Calculator: Monthly Car Payment & Interest
See what a car loan really costs each month, and how much interest you pay across the full term before the vehicle is yours outright.
Adjust the inputs and select Calculate for a full breakdown.
Year-by-year amortization schedule
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Monthly payment | Total interest | Total of payments |
|---|---|---|---|
| $35k · 7.5% · 5-year | $701.33 | $7,079.69 | $42,079.69 |
| $35k · 7.5% · 7-year | $536.84 | $10,094.53 | $45,094.53 |
| $20k · 6.0% · 4-year | $469.70 | $2,545.63 | $22,545.63 |
| $50k · 8.0% · 6-year | $876.66 | $13,119.67 | $63,119.67 |
How This Calculator Works
Enter the amount you are financing, the annual interest rate, and the loan term. The calculator converts the APR to a monthly rate, counts the total number of payments, and applies the fixed-rate amortization formula to find a constant monthly payment. It then rebuilds the schedule so you can see how much of each year goes to principal versus interest.
The Formula
Fixed-Rate Amortization
P = loan amount, r = monthly rate (APR ÷ 12), n = number of monthly payments
Worked Example
Suppose you finance $35,000 at 7.5% APR over 5 years. The monthly rate is 0.625% across 60 payments, producing a payment of about $701. Over the full term you repay roughly $42,080, so interest adds about $7,080 to the price of the vehicle on top of what you financed.
Key Insight
Stretching an auto loan to lower the monthly payment is the most expensive habit in car buying. A longer term means you owe more than the car is worth for longer, and pay materially more interest.
Frequently Asked Questions
Should I include sales tax in the amount financed?
Only if you are rolling tax and fees into the loan. If you pay tax and fees up front, enter just the vehicle price minus your down payment and trade-in.
Why is a longer car loan more expensive?
A longer term spreads the same principal over more months, so each payment is smaller but you pay interest for longer. Total interest rises even though the monthly figure looks easier.
Does a bigger down payment lower my payment?
Yes. A larger down payment reduces the amount financed, which lowers both the monthly payment and the total interest paid over the life of the loan.
What is being upside down on a car loan?
You are upside down, or have negative equity, when the loan balance is higher than what the vehicle is worth. Long terms and small down payments make this more likely, and it becomes a problem if you need to sell or total the car early.
Is dealer financing or a bank loan better?
Neither is automatically cheaper. Get a pre-approved rate from a bank or credit union first, then let the dealer try to beat it. Compare the APR and the total interest, not just the monthly payment, since dealers often quote a longer term to make the figure look smaller.
Should I take a manufacturer rebate or low-APR offer?
It depends on the amounts. A cash rebate lowers the amount financed, while a promotional low APR lowers the interest. Run the price both ways: enter the rebate-reduced amount at the standard rate, then the full amount at the promotional rate, and pick the lower total cost.
Related Calculators
Data Sources & Benchmarks
This calculator draws on 3 independent, dated sources. The starting values for amount financed and interest rate are taken from the benchmarks below and refresh whenever the snapshots are updated.
Methodology & Review
Payments use the standard fixed-rate amortization formula on the amount financed. Sales tax, registration, and dealer fees are included only if you roll them into the loan. Results are cross-checked against published lender amortization tables.
Written by Ugo Candido · Last updated May 17, 2026.