Auto Loan
Calculate your monthly payment, total interest cost, and the true price of a vehicle once financing is factored in.
Show amortization schedule
| Year | Interest | Principal | Balance |
|---|---|---|---|
| 1 | $1,616 | $4,724 | $22,276 |
| 2 | $1,300 | $5,040 | $17,237 |
| 3 | $962 | $5,377 | $11,859 |
| 4 | $602 | $5,738 | $6,122 |
| 5 | $218 | $6,122 | $0 |
How to use this calculator
- Enter the vehicle priceSticker or negotiated price, before tax and fees.
- Subtract your down payment and trade-inMore money down means a smaller loan and less total interest.
- Set the rate and termA longer term lowers the monthly payment but raises total interest.
A car is the largest purchase most people finance after a home, and the loan terms decide how much it really costs. The monthly payment the dealer quotes is only part of the story — the term length and APR quietly determine the total. This calculator shows the full picture before you sign anything.
How an auto loan works
You borrow the price minus any down payment and trade-in, then repay it over a fixed term at a set APR. The payment covers interest first and principal second. Two numbers move the total cost most: the APR, which depends heavily on your credit, and the term length.
The longer-term trap
Stretching a loan from 48 to 72 or 84 months lowers the monthly payment, which is exactly why dealers offer it — but it raises the total interest and keeps you "underwater" (owing more than the car is worth) for longer. A lower payment can quietly mean thousands more paid over the life of the loan.
A worked example
Finance $30,000 at 7% APR over 60 months and you pay about $594 a month and roughly $5,640 in interest. Stretch it to 72 months and the payment drops to about $512 — but total interest climbs to roughly $6,860. The smaller payment costs you over $1,200 more. Run your own numbers above, and watch what happens to total interest as you change the term.