For a $35,000 car with $5,000 trade-in and $3,000 down at 5.9% APR over 60 months, your monthly payment would be approximately $523. Sales tax and fees may add to your total. Use our calculator for an exact estimate.
How to Use the Auto Loan Calculator
Our auto loan calculator helps you estimate the monthly payment and total cost of financing a vehicle. Enter the vehicle price, your down payment amount, any trade-in value, the annual interest rate, loan term, and dealer fees. The calculator instantly computes your net loan amount and shows detailed results including monthly payment, APR, total payment, and total interest.
The loan amount is calculated by subtracting your down payment and trade-in value from the vehicle price. This net amount is what you will actually finance. The amortization chart shows how your remaining balance decreases over the loan term, and the full schedule table breaks down each payment into principal and interest portions.
Experiment with different down payment amounts and loan terms to find the best balance between monthly affordability and total cost. You can export results as PDF, CSV, or PNG for comparison shopping between dealerships.
Understanding Auto Loans
An auto loan is a secured loan specifically for purchasing a vehicle. The car itself serves as collateral, which typically allows for lower interest rates compared to unsecured personal loans. Auto loans are available from banks, credit unions, online lenders, and directly through car dealerships.
Loan terms for auto financing typically range from 24 to 84 months. While longer terms reduce your monthly payment, they increase the total interest paid and may result in being "upside down" on your loan — owing more than the car is worth. Financial experts generally recommend loan terms of 60 months or less for new cars and 36 months or less for used cars.
Your down payment significantly affects your loan. A larger down payment reduces the amount you need to finance, lowers your monthly payment, and decreases the total interest paid. Putting down at least 20% on a new car or 10% on a used car helps avoid negative equity situations.
Trade-in value is the amount your current vehicle is worth when the dealership accepts it as partial payment toward your new car. Getting multiple appraisals for your trade-in ensures you receive a fair value. The trade-in amount is subtracted from the purchase price before financing.
Frequently Asked Questions
What is a good auto loan interest rate?
Auto loan rates vary based on credit score, loan term, and whether the vehicle is new or used. Excellent credit (750+) can qualify for rates of 3-5% on new cars. Good credit (700-749) typically sees 5-7%. Average credit may see 7-12%. Always shop around to find the best rate available to you.
How much should I put down on a car?
Experts recommend at least 20% down on a new car and 10% on a used car. A larger down payment reduces your monthly payment, decreases total interest, and helps you avoid being "upside down" on your loan where you owe more than the car is worth.
Should I get dealer financing or a bank loan?
Compare both options. Dealers sometimes offer promotional rates (0% or very low APR) on certain models. However, bank or credit union pre-approval gives you negotiating power and a clear interest rate to compare against dealer offers.
What are dealer fees and how do they affect my loan?
Dealer fees include documentation fees, delivery charges, and other processing costs. These fees are added to your total financing amount if not paid upfront, increasing both your monthly payment and total interest paid over the life of the loan.
Is it better to lease or buy a car?
Leasing offers lower monthly payments and the ability to drive a new car every few years, but you do not build equity. Buying costs more monthly but you own the car outright when the loan is paid off. Consider your driving habits, budget, and how long you keep vehicles.
Tips for Getting the Best Auto Loan
- Get pre-approved — secure financing from your bank or credit union before visiting dealerships to strengthen your negotiating position.
- Negotiate the vehicle price first — settle on the purchase price before discussing financing terms to avoid confusion.
- Keep the term short — aim for 60 months or less on new cars and 36 months on used cars to minimize total interest.
- Check your credit score — know your score before applying. Even a small improvement can save hundreds in interest.
- Factor in total ownership costs — insurance, fuel, maintenance, and registration costs add to your monthly vehicle expenses.
- Be wary of add-ons — extended warranties, paint protection, and other dealer add-ons inflate the loan amount and total cost.
Disclaimer
This calculator is provided for informational and educational purposes only. Results are estimates based on the information you provide and may not reflect actual loan terms, interest rates, or total costs offered by lenders. This tool does not constitute financial or legal advice. Consult a qualified mortgage professional or financial advisor before making any borrowing decisions. CalculatorTray is not responsible for any decisions made based on these estimates.