Car Loan Payment Calculator
Estimate your monthly car payment in seconds — then see the total interest and a full payoff schedule. Adjust the down payment, trade-in, rate and term to find a payment that actually fits your budget.
Enter your numbers
New to this? Leave the defaults — they're realistic — and just change the price and rate.
Principal vs. interest
How much of your total payments goes to the car itself versus the cost of borrowing.
Amortization schedule
Year-by-year summary of how your balance falls. Expand for the full month-by-month detail.
| Period | Starting balance | Principal paid | Interest paid | Ending balance |
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Show full month-by-month schedule
| Period | Starting balance | Principal paid | Interest paid | Ending balance |
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How car loan payments work
A car loan is a fixed-rate, fully-amortizing loan. You borrow a lump sum — the amount financed — and repay it in equal monthly payments over a set number of months. Each payment is split two ways: part covers the interest the lender charges for that month, and the rest goes toward the principal (the balance you actually owe).
Early in the loan your balance is large, so most of each payment is interest and only a little chips away at the principal. As the balance shrinks, the interest portion falls and more of every payment attacks the principal. That shifting split is exactly what the amortization schedule above shows.
Term length is a trade-off. A longer term (72 or 84 months) spreads the balance over more payments, so each one is smaller and easier on your monthly budget. But you're borrowing the money for longer, so you pay more total interest — sometimes thousands more — for the same car. A shorter term costs more each month but far less overall.
Your down payment and trade-in equity both reduce the amount you finance before the loan even starts. Because they come straight off the top, every extra dollar down lowers both your monthly payment and the total interest you'll pay, and helps you avoid being "underwater" — owing more than the car is worth — in the early years when cars depreciate fastest.
The formula & how we calculate it
We use the standard amortizing-loan payment formula. In plain English: your monthly payment is the amount financed, multiplied by the monthly interest rate, scaled by a factor that accounts for paying it back over n months.
P = amount financed (price + tax + fees − down payment − trade-in equity)
r = monthly interest rate = APR ÷ 12 ÷ 100
n = number of months in the term
Worked example (the defaults above):
- $35,000 car − $5,000 down =
Pof $30,000 financed (0% tax/fees, no trade-in). - 7% APR ÷ 12 = a monthly rate
rof 0.5833% (0.0058333). - Term
n= 60 months. - Plug in: M = 30000 × 0.0058333 × (1.0058333)60 ÷ ((1.0058333)60 − 1) ≈ $594.04 / month.
- Over 60 months that's $35,642.16 paid, so $5,642.16 in interest.
If the APR is 0% (a promotional or in-house loan), the formula simply becomes the amount financed divided by the number of months, since there's no interest to add.
What affects your car payment
- Credit score & APR. Your interest rate is the single biggest lever after price. Lenders price by credit tier — the difference between a 5% and an 11% APR on a $30,000 loan can be over $5,000 across the term. Shop your rate with a bank or credit union before you sit down at the dealer.
- Loan term. Longer terms lower the monthly payment but raise total interest and keep you underwater longer. Pick the shortest term whose payment you can comfortably afford.
- Down payment & trade-in. Money down and trade-in equity reduce the amount financed dollar-for-dollar, lowering both the payment and the interest.
- Taxes & fees. Sales tax, title, registration and doc fees are often rolled into the loan, which increases the amount financed (and the interest you pay on it). In many states a trade-in reduces the taxable amount.
- New vs. used. Used cars usually carry higher APRs than new cars, but a lower price often means a smaller loan overall. Weigh the rate against the amount financed, not just one or the other.
How your credit score affects your car loan
Your APR — the single biggest driver of what this loan costs — is set largely by your credit score. Auto-loan rates vary widely by credit tier, and moving up even one tier can save thousands over the life of the loan.
It’s the biggest lever you control before you borrow. Learn what a credit score is, how to check yours for free, and how to improve it — then come back and see what a lower rate does to the numbers above.
Glossary
- APR (Annual Percentage Rate)
- The yearly cost of the loan as a percentage. We divide it by 12 to get the monthly rate used in the payment formula.
- Principal
- The amount you actually borrow (the amount financed). Interest is charged on the outstanding principal each month.
- Amortization
- The process of paying off a loan in equal installments, with each payment split between interest and principal. The split shifts toward principal over time.
- LTV (Loan-to-Value)
- The loan amount divided by the car's value. A lower LTV (bigger down payment) usually means a better rate and less risk of being underwater.
- Negative equity / "underwater"
- Owing more on the loan than the car is currently worth. Common early in long-term loans because cars depreciate faster than the balance falls.
- Down payment
- Cash you pay up front. It reduces the amount financed before interest is ever applied.
- Term
- The length of the loan in months (e.g., 60 months = 5 years). Longer terms lower payments but increase total interest.
Frequently asked questions
How much is a $35,000 car loan per month?
It depends on your down payment, rate and term. Financing $30,000 (a $35,000 car with $5,000 down) for 60 months at 7% APR is about $594 per month, with roughly $5,642 in total interest. Stretch the same loan to 72 months and the payment drops to around $511 — but total interest climbs to about $6,826. Use the calculator above to match your exact numbers.
What's a good interest rate for a car loan?
Rates move with the broader market and your credit. As a rough guide, borrowers with excellent credit (760+) see the lowest advertised new-car rates, while subprime borrowers can face double-digit APRs. Used-car rates run higher than new-car rates. The most reliable move is to get pre-approved by a bank or credit union, then treat the dealer's financing as just one more quote to beat.
How much should I put down on a car?
A common target is about 20% down on a new car and 10% on a used car. A bigger down payment lowers your monthly payment and total interest, helps you qualify for a better rate, and keeps you from going underwater while the car depreciates fastest in its first couple of years.
Is a 72- or 84-month car loan a bad idea?
Not automatically — but go in with eyes open. Long terms make the monthly payment look affordable, yet you pay far more total interest and stay underwater for years because the car loses value faster than you pay down the loan. If you must stretch the term to fit your budget, try to put more money down and make extra principal payments when you can, so you're not still paying off a car you've grown tired of.
How is a car loan payment calculated?
It's a fixed-rate, fully-amortizing loan: M = P · r · (1+r)n / ((1+r)n − 1), where P is the amount financed, r is the monthly rate (APR ÷ 12) and n is the number of months. Each month, interest is charged on the remaining balance and the rest of your payment reduces the principal — see the worked example and amortization schedule above.
Does my trade-in lower my monthly payment?
Yes. Your trade-in equity — its value minus any loan you still owe on it — works like extra cash down, reducing the amount you finance and therefore both your payment and total interest. In many states a trade-in also lowers the sales tax on your new car. If you owe more than the trade-in is worth, that negative equity gets added to your new loan instead.
What credit score do I need for a low car loan rate?
Lenders tier their rates by score. Generally, the mid-700s and above unlock the best advertised pricing, the 660–739 range gets near-prime rates, and below about 620 you'll see the highest APRs or need a co-signer. Because the tiers are steep, raising your score by even one band before you shop can save hundreds — or thousands — over the life of the loan.