About Car Loan Calculator

Calculate car loan payments, interest, and amortization schedules. Part of the DevTools Surf developer suite. Browse more tools in the Calculators collection.

Use Cases

• Calculate monthly payment before visiting a dealership
• Compare 36, 48, 60, and 72-month loan terms
• Determine how much to put down to keep payments within budget
• Model the cost of rolling negative trade-in equity into a new loan

Tips

• Enter the out-the-door price (including taxes and fees), not just the MSRP — this is what you actually finance
• Adjust the loan term slider to see how monthly payments and total interest change: a 72-month loan costs significantly more total interest than a 48-month loan
• Enter your trade-in value and outstanding balance separately to see how negative equity affects your new loan amount

Fun Facts

• The first auto loan in the US was made by Manufacturers Finance Company in 1919. Before that, cars were bought entirely with cash — Henry Ford initially refused to offer financing to prevent encouraging debt.
• The average auto loan term in the US reached a record 69.7 months in 2023. In 2005 the average was 60 months. Longer terms reduce monthly payments but dramatically increase total interest paid.
• Negative equity (owing more than the car is worth) affects about 30% of US car buyers trading in their vehicle — sometimes called being 'underwater' on a car loan. It is exacerbated by longer loan terms and rapid depreciation in the first two years.

FAQ

Should I finance through the dealer or my bank?

Get pre-approved by your bank or credit union before visiting the dealer. Dealers sometimes mark up the interest rate (dealer reserve) on top of what lenders offer. A pre-approval gives you a baseline to compare against.

What is a good auto loan interest rate?

Rates vary by credit score and lender. In 2024, borrowers with excellent credit (750+) can get 5-7% APR. Below 700 credit score, rates typically exceed 10-15%. Check current rates at your credit union as a reference.

How does down payment affect total cost?

A larger down payment reduces the financed amount, which reduces both monthly payments and total interest. A general rule: put down at least 20% to avoid being underwater on the loan from day one due to initial depreciation.