Estimate your monthly car payment with down payment, trade-in value, interest rate, and loan term options.
How Auto Loan Payments Are Calculated
Auto loan payments use the same amortization formula as mortgages. The loan amount equals the vehicle price minus your down payment and trade-in value.
Loan Amount = Vehicle Price - Down Payment - Trade-In
Monthly Payment = Loan × [r(1+r)^n] / [(1+r)^n - 1]
r = Annual Rate / 12, n = Loan Term in months
Frequently Asked Questions
As of 2025-2026, good rates for new cars range from 4-6% for excellent credit (750+), 6-9% for good credit (670-749), and 9-14% for fair credit (580-669). Used car rates are typically 1-2% higher.
Shorter terms (36-48 months) have higher monthly payments but lower total interest. A 60-month loan on $30,000 at 6% costs $2,400 more in interest than a 36-month loan. Avoid 72-84 month loans if possible — you'll likely owe more than the car is worth.
A trade-in reduces the amount you need to finance. If you're buying a $35,000 car with a $10,000 trade-in and $5,000 down, you only finance $20,000. This lowers your monthly payment and total interest.
This calculator shows the loan payment only. Sales tax (varies by state, typically 4-10%), registration fees, and dealer fees will add to your total cost. Add these to the vehicle price for a more complete estimate.
Get pre-approved by your bank or credit union before visiting the dealer. This gives you leverage to negotiate and a baseline rate to compare against dealer financing.