Auto Loan Payment Calculator

An auto loan payment comes down to three things: how much you're actually borrowing, the interest rate on that loan, and how long you have to pay it back. This calculator starts by figuring out the real loan amount, then applies the standard formula lenders use to spread that amount into equal monthly payments.

The loan amount isn't just the sticker price of the car. This calculator subtracts both your down payment and your trade-in value from the vehicle price first, since both reduce how much you actually need to finance. A larger down payment or a trade-in with real value can meaningfully shrink your loan, which lowers your monthly payment and reduces the total interest you'll pay over the life of the loan, since interest is calculated on whatever balance remains.

Once the loan amount is set, the monthly payment is calculated using an amortization formula that keeps the payment the same every month while the mix of principal and interest shifts over time: early payments are weighted more toward interest, and later payments pay down more principal, even though the total payment doesn't change. The loan term matters a lot here too — stretching a loan from 48 to 72 months lowers the monthly payment, which can make a more expensive car feel affordable, but it also means paying interest for two extra years, which usually increases the total interest paid by a significant amount.

This calculator assumes a fixed interest rate for the full loan term, which is standard for most auto loans, and doesn't include taxes, registration fees, or add-ons like extended warranties, which many dealers roll into the financed amount and which would increase your actual loan balance and payment.