Auto Loan Calculator
Use this calculator to estimate your monthly auto loan payments, total interest charges and a complete amortization schedule. Enter your vehicle price down payment interest rate loan term sales tax and any additional fees to get a full picture of your car financing costs before you sign.
| Total Loan Amount | $20,000 |
| Sales Tax | $0 |
| Upfront Payment | $5,000 |
| Total of 60 Loan Payments | $22,432 |
| Total Interest | $2,432 |
| Total Cost (price, interest, tax, fees) | $27,432 |
| Month | Payment | Principal | Interest | Balance |
|---|
Begoña Barron is a financial writer focused on simplifying car loans through practical guides and calculators, helping users plan payments, compare options, and finance their next vehicle with confidence.
Auto Loan Calculator — Calculate Your Car Payment in Seconds
Before you sign anything at the dealership, use our free auto loan calculator to know exactly what you are getting into. This auto loan payment calculator gives you three things right away: your monthly payment, the total interest you will pay, and your full payoff schedule. Just plug in your numbers and hit calculate no sign-up, no guesswork. Whether you are buying a new car, a used car, or thinking about refinancing, this tool helps you stay within your budget and avoid surprises.
What Is an Auto Loan Calculator?
An auto loan calculator is a free online tool that tells you how much your car loan will cost each month. It is also called an auto finance calculator or autocalc by many drivers. You enter a few simple numbers the car price, your down payment, the interest rate, and the loan length and it does all the maths for you in seconds.
It works for new cars, used cars, and refinancing your current loan. You do not need to be a math expert. The calculator handles the hard part so you can focus on finding the right car at the right price.
What It Needs | What It Gives You | Why It Helps |
Car price, down payment, interest rate, loan term | Monthly payment, total interest, payoff date | Plan your budget before you buy |
Trade-in value, sales tax, fees (optional) | Full amortization schedule | See every payment broken down |
Refinance details (optional) | New vs old payment comparison | Find out if refinancing saves money |
How to Use the Auto Loan Calculator: Step-by-Step
It takes less than 2 minutes to use this auto loan payment calculator. Here is how to accomplish it:
Step 1: Enter Vehicle Cost
Enter the full price of the vehicle. Use the MSRP sticker price of new autos. Use the sticker price for used automobiles. Not sure if the used car pricing is right? Before you enter a number check Kelley Blue Book (KBB) or Edmunds for the market value.
Step 2: Make Your Down Payment
The down payment is the money you put down. For new autos, a good rule of thumb is 20% of the car price. For used autos, shoot for 10% or better. The larger the down payment, the smaller the loan and the less interest paid over time.
Step 3: Enter the Interest Rate
Enter your lender’s annual percentage rate (APR). Not sure what rate you qualify for? Scroll down to the interest rate table in this page. Note: APR includes fees, while the simple interest rate does not. Always compare APRs not just rates when shopping lenders.
Step 4: Choose Your Loan Term
Pick how long you want to take to pay off the loan. Common options are 36, 48, 60, 72 or 84 months. A shorter term means higher monthly payments but less total interest. We recommend staying at 60 months or less to avoid overpaying.
Step 5: Enter Trade In Value
If you are trading in your old car enter its trade in value not its retail value. The trade in reduces your loan amount. In most states trading in also reduces the sales tax you pay on the new car which can save you a few hundred dollars.
Step 6: Add Sales Tax and Fees
This step is optional but it makes the result much more accurate. Common fees to add include: doc fees, title and registration fees, and destination charges. Adding these gives you the real total cost of the loan.
Step 7: Hit Calculate
Click the calculate button. The auto finance calculator will instantly show you your monthly payment, the total interest you will pay over the life of the loan, your full amortization schedule (every payment, month by month), and your exact payoff date.
Auto Loan Payment Formula Explained
Curious how the calculator does the math? Here is the formula it uses. This also answers the question, How do you calculate auto loan payments?
M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1] M = Monthly Payment | P = Loan Amount | r = Monthly Interest Rate (APR ÷ 12) | n = Number of Payments |
Worked Example: $25000 Loan at 7% APR for 60 Months
Let’s stroll through it one step at a time:
- Loan amount (P) = $25,000
- Annual rate = 7% (7% / 12) = 0.5833% (0.005833) each month
- Number of payments (n) = 60
- M = $25000 x [0.005833 x (1.005833)^60] / [(1.005833)^60 – 1]
- M ≈ $495/month
- How to Calculate Interest on an Auto Loan
How to Calculate Auto Loan Interest
With every monthly payment , some of the money goes towards interest , and some goes towards your loan debt . To figure out the interest for any given month use this simple rule:
Monthly Interest = Remaining Balance × (Annual Rate ÷ 12) Example: $24,000 balance × (7% ÷ 12) = $140 in interest that month |
In the early months more of your payment goes to interest. Over time, more goes to the principal. This is called amortization.
Current Auto Loan Interest Rates (2026)
Your credit score is the biggest factor in the rate you get. Here is what lenders are charging right now, based on Experian VantageScore data. If you have ever typed ‘auto loan calculator’ into Google and landed here, this table is exactly what you need to pick a realistic rate before using the tool.
Credit Score Tier | Score Range | Avg New Car APR | Avg Used Car APR |
Superprime | 781 – 850 | 4.55% | 6.30% |
Prime | 661 – 780 | 6.23% | 8.77% |
Nonprime | 601 – 660 | 9.67% | 14.03% |
Subprime | 501 – 600 | 13.44% | 19.42% |
Deep Subprime | 300 – 500 | 16.01% | 21.77% |
Source: Experian VantageScore, Q1 2026
Even a small credit score improvement can drop your rate by 2% or more, saving you thousands. Pay bills on time, reduce credit card balances, and avoid opening new accounts in the 30 days before you apply. If your site has a credit score guide, check it out before applying for a loan.
Auto Loan Early Payoff Calculator
Want to get out of debt faster? The auto loan early payoff calculator also called the early payoff auto loan calculator shows you exactly how much you can save by adding extra money to your monthly payment. Most top pages skip this topic. We cover it fully.
How Extra Payments Reduce Your Total Interest
Every extra dollar you pay goes straight to reducing your loan balance. A smaller balance means less interest the next month. Over time, even small extra payments add up to big savings.
Scenario | Monthly Payment | Extra Payment | Total Interest Paid | Payoff Time |
No extra payment | $495 | $0 | $4,700 | 60 months |
$50 extra/month | $495 | $50 | $4,300 | 57 months |
$100 extra/month | $495 | $100 | $3,950 | 54 months |
Loan: $25,000 | 7% APR | 60-month term
As you can see adding just $50 a month to an auto loan calculator with extra payments saves around $400 in interest and cuts 3 months off your loan.
Check for Prepayment Penalties First
Before you start making extra payments read your loan agreement. Some lenders charge a prepayment penalty if you pay off the loan too early. Most modern auto loans do not have this fee, but it is always smart to check. Call your lender or look at your loan documents.
Use the Early Payoff Calculator Tool
To see your exact savings based on your loan details, use our dedicated early payoff auto loan calculator. Enter your current balance, remaining term, and the extra amount you want to pay and it shows you the new payoff date and total interest saved.
Refinance Auto Loan Calculator
Refinancing means replacing your current loan with a new one usually at a lower interest rate or different term. The refinance auto loan calculator helps you figure out if refinancing is worth it. Here’s an easy way to figure out how much you can save by refinancing your car loan:
Refinance Savings = (Old Monthly Payment × Remaining Months) − (New Monthly Payment × New Term) Use this formula to quickly compare your old loan vs a new offer |
Worked Example
Say you have 36 months left on your current loan and pay $520 per month. A new lender offers $470 per month for the same 36 months. Here is the math:
- Old loan total: $520 × 36 = $18,720
- New loan total: $470 × 36 = $16,920
- Total savings: $18,720 − $16,920 = $1,800
That is $1,800 saved just by refinancing. The auto refinance payment calculator on this site can run these numbers automatically with your real loan details.
When Should You Refinance? 3 Signs It Makes Sense
- Interest rates have dropped by 1% or more since you got your loan
- Your credit score has improved even 30 points can get you a better rate
- You are facing financial hardship and need a lower monthly payment
How to Calculate Per Diem on an Auto Loan
Per diem means ‘per day’ in Latin. When you request a payoff quote from your lender, they often include a per diem interest charge. This is the extra interest that builds up each day until you actually pay off the loan. Here is how to calculate per diem on auto loan:
Per Diem = (Loan Balance × Annual Interest Rate) ÷ 365 Example: $18,000 balance × 7% ÷ 365 = $3.45 per day |
So if your lender gives you a payoff quote good for 10 days, add $3.45 × 10 = $34.50 to the amount. This is the extra interest that would build up in that time. Always ask your lender for a per diem rate when requesting a payoff amount.
How Are Finance Charges Calculated on Auto Loans?
A finance charge is the total amount of money you pay to borrow on top of the original loan amount. Here is how are finance charges calculated on auto loans, in simple terms:
Finance Charge = Total of All Payments − Original Loan Amount Example: (60 × $495) − $25,000 = $29,700 − $25,000 = $4,700 in finance charges |
Simple interest is used for most car loans. In this case you only pay interest on the amount that is still owed not on the full amount. This is good for borrowers because your interest cost drops every month as you pay down the loan.
Some older or subprime loans use precomputed interest. With these, the total interest is fixed at the start and does not go down even if you pay early. Always ask your lender which type of interest your loan uses.
Did You Know?
APR is not the same as the interest rate. The interest rate is just the cost of borrowing. APR (Annual Percentage Rate) includes the interest rate PLUS any fees like origination fees or doc fees. Always compare APRs when shopping for a loan, not just interest rates. A loan with a lower interest rate but high fees can cost more than a loan with a slightly higher rate and no fees.
Auto Loan Calculator Canada
Looking for an auto loan calculator Canada version? Good news this calculator works just as well for Canadian buyers. Simply enter your values in Canadian dollars (CAD) and the math works exactly the same way.
Here are a few things Canadian buyers should know:
- Canadian auto loans work the same as US loans same formula, same amortization process
- Sales tax in Canada varies by province. Ontario charges HST (13%), British Columbia charges GST + PST (12%), Alberta only charges GST (5%). Always check your province’s rate.
- Interest rates in Canada are typically slightly higher than US rates. The Bank of Canada’s overnight rate influences what lenders charge.
- CMHC (Canada Mortgage and Housing Corporation) does NOT cover auto loans. That program is only for mortgages. Do not confuse the two.
To use the auto finance calculator Canada tool, just enter your numbers in CAD. The results monthly payment, total interest, and full schedule will all be in Canadian dollars.
Types of Auto Loan Calculators
Not all auto loan tools do the same thing. To give you an idea of the most popular types, here are the autocalc and figure auto loan tools:
Calculator Type | What It Does | Best For |
Standard Auto Loan Calculator | Monthly payment from price + rate + term | First-time car buyers |
Reverse Auto Loan Calculator | Find max loan from your monthly budget | Budget-first shoppers |
Auto Loan Early Payoff Calculator | Savings from making extra payments | People wanting to pay off fast |
Refinance Auto Loan Calculator | Compare old vs new loan total cost | Existing loan holders |
Auto Finance Calculator Canada | CAD-friendly with Canadian tax rates | Canadian car buyers |
Figure Auto Loan Tool | Brand-specific calculator by Figure.com | Figure.com loan applicants |
Cash vs. Auto Loan Financing: Which Is Better?
Should you pay cash for a car or finance it? There is no single right answer it depends on your situation. Here is a clear comparison to help you decide:
Paying Cash | Financing with Auto Loan |
No monthly payments ever | Keeps your savings intact for emergencies |
No interest charges at all | Builds your credit score with on-time payments |
Full ownership from day one | Access to manufacturer 0%–2.9% financing deals |
Better flexibility if selling privately | Lets you invest your cash at a higher return |
No risk of going underwater on a loan | Access to a more expensive car within your monthly budget |
If a manufacturer is offering 0%–2.9% financing, taking the loan and keeping your cash invested often makes more financial sense. Run the numbers with our personal loan calculator to see what works best for your situation.
Auto Loan Strategies to Save Money
A few smart moves before and during the car buying process can save you thousands of dollars. Here are the best ones:
- Get pre-approved before visiting the dealership. This gives you real negotiating power and stops the dealer from focusing on the monthly payment instead of the total price.
- Apply to 3 or more lenders within a 14-day window. Credit bureaus count multiple auto loan applications in a short period as a single inquiry, so your credit score takes only one small hit.
- Choose a 48–60 month loan term over 72–84 months. Longer terms look affordable month-to-month but cost thousands more in total interest.
- Put 20% down on new cars and 10% on used. This prevents negative equity where you owe more than the car is worth.
- Check manufacturer financing directly. Brands like Toyota, Ford, and Honda often offer 0%–2.9% APR deals that beat bank rates.
- Cash back vs. low rate: some dealers offer a choice between a cash rebate or a low interest rate. Use the auto finance calculator to compare both options the low rate often wins on loans longer than 36 months.
- Improve your credit score 30 days before applying. Pay down credit card balances, fix errors on your credit report. Even a 20-point jump can drop your rate by 2% or more that is hundreds of dollars saved.
FAQs
How Do You Calculate Auto Loan Payments?
Use this formula: M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1]. P is the loan amount, r is the interest rate per month (the yearly rate divided by 12) and n is the total number of payments. A loan for $25,000 with an APR of 7% over 60 months would have a payment of about $495 per month. You can also use our above tool which will do the math for you right away.
How to Calculate Auto Loan Interest?
To find the interest part of any payment increase the amount still owed by the interest rate per month. Interest paid each month equals the balance x (12) the annual rate. Let’s say your amount is $20,000 and your rate is 7%. That month your interest will be $20,000 times 0.07 times 12 which is $116.67. This amount goes down every month as you pay off the rest.
How to Calculate Per Diem on an Auto Loan?
The interest that comes up on your loan every day is called per diem. The math is as follows: Per Diem = (Loan Balance ÷ Annual Interest Rate) x 365. If you have $18,000 in the account and the interest rate is 7% per day that’s $3.45 per day. When lenders tell you how much you owe they use this number to make sure that the amount is correct no matter what day you pay.
How to Calculate Savings from Auto Loan Refinancing?
The savings are equal to the difference between the old monthly payment and the number of months left on the term. Take the old amount of $520 times 36 months which is $18,720. The new amount is $470 divided by 36 months, which equals $16,920. Total savings = $1,800. Use our refinance auto loan calculator to run this with your exact numbers and see if refinancing is worth it.
What Is a Good Interest Rate for an Auto Loan in 2026?
A good rate depends on your credit score. If your score is above 781 (superprime), you can expect rates as low as 4.55% on new cars. Prime borrowers (661–780) typically see 6%–7%. If your score is below 600, rates can go above 13%. To get a better deal, work on your credit score and compare rates from at least three lenders.