Free Car Loan Calculator
Calculate your monthly car payment with our free auto loan calculator. Factor in down payment, trade-in value, interest rate, and loan term. See total interest and cost for new and used car financing.
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Monthly Payment
$586.98
Loan Amount
$30,000
Total Interest
$5,219
Total Cost
$35,219
Formula
M = P × [r(1+r)^n] / [(1+r)^n – 1] — where P = loan amount (price – down – trade-in), r = monthly rate, n = monthsHow the Car Loan Calculator Works
This calculator estimates your monthly auto loan payment using the standard amortization formula. Enter the vehicle price, your down payment and trade-in value (if any), the interest rate (APR), and your preferred loan term to see your monthly payment, total interest paid, and overall cost of the loan.
Understanding the total cost of financing — not just the monthly payment — is critical when car shopping. A lower monthly payment with a longer term often means paying thousands more in interest over the life of the loan.
Understanding Your Car Loan Numbers
Loan Amount is the actual amount financed after subtracting your down payment and trade-in value from the vehicle price. Monthly Payment is the fixed amount due each month. Total Interest shows how much extra you pay beyond the vehicle price — this is the true cost of borrowing.
For example, financing $30,000 at 6.5% for 60 months means a $587 monthly payment, $5,227 in total interest, and $35,227 in total cost. The same loan over 72 months drops the payment to $506 but increases total interest to $6,413.
Tips for Getting the Best Car Loan
- Check your credit score first — know where you stand and dispute any errors before applying
- Get pre-approved — have a rate in hand before stepping onto the dealer lot
- Negotiate the price, not the payment — dealers can manipulate monthly payments by extending terms
- Keep the term to 60 months or less — longer terms cost more and risk negative equity
- Put at least 20% down — this protects against depreciation and lowers your interest cost
- Consider total cost of ownership — insurance, maintenance, fuel, and depreciation matter too
New vs. Used Car Financing
New cars typically get lower interest rates but depreciate faster — a new car loses about 20% of its value in the first year. Used cars (2-3 years old) have already absorbed the steepest depreciation and can save you thousands while still offering modern features and reliability. Certified pre-owned (CPO) vehicles offer a middle ground with manufacturer warranties and competitive financing rates.
Use the calculator to compare scenarios: a $35,000 new car vs. a $22,000 used car with different rates and terms. The total cost difference may surprise you.
Frequently Asked Questions
What is a good interest rate for a car loan in 2026?
Car loan rates depend on your credit score, loan term, and whether the vehicle is new or used. In 2026, good rates for new cars range from 4.5-7% for borrowers with good credit (700+). Used car rates are typically 1-2% higher. Credit scores above 750 can qualify for promotional rates as low as 2.9-3.9% from some manufacturers.
How much should I put down on a car?
Financial experts recommend putting down at least 20% on a new car and 10% on a used car. A larger down payment reduces your loan amount, lowers monthly payments, and helps you avoid being 'upside down' (owing more than the car is worth). Even $1,000-2,000 extra down can save hundreds in interest over the loan term.
Is a 72 or 84-month car loan a bad idea?
Longer loan terms lower your monthly payment but cost significantly more in total interest. An 84-month loan also means you'll likely owe more than the car is worth for most of the loan ('negative equity'). Financial advisors recommend keeping car loans to 60 months or less. If you can't afford the payment on a 60-month term, consider a less expensive vehicle.
Should I finance through the dealer or my bank?
Always get pre-approved by your bank or credit union before visiting a dealer. This gives you a baseline rate to negotiate against. Dealers sometimes offer competitive manufacturer financing (especially 0% APR promotions), but their rates can also be higher since they add a markup. Having a pre-approval gives you leverage.
How does a trade-in affect my car loan?
A trade-in reduces the amount you need to finance, just like a down payment. If you're buying a $35,000 car with a $5,000 trade-in, you only finance $30,000. However, make sure you're getting fair market value — check KBB and Edmunds before negotiating. Sometimes selling privately gets you 10-20% more than a dealer trade-in.