Car Loan Calculator

The loan is not always the car price minus your down payment. Start from the car price, take off your down payment and what your old car is worth, then add what you still owe on it, and any sales tax, fees and add-ons you finance. What is left is the loan, and every dollar of it is charged interest.

Add-ons such as an extended warranty, GAP coverage or accessories are optional, and you can say no or negotiate their price (Consumer Financial Protection Bureau). If you finance them, put them under “Fees and add-ons” in More options to see what they add to the payment and the interest.

For the same loan and the same rate, a longer loan means a smaller payment, paid for longer, and more interest in total. For the $25,000 example at 7%:

• 36 months: $772 a month, about $2,789 in interest.
• 48 months: $599 a month, about $3,735.
• 60 months: $495 a month, about $4,702.
• 72 months: $426 a month, about $5,688.
• 84 months: $377 a month, about $6,694.

Long loans are common: about a quarter of new-car buyers who financed in Q3 2026 took 84 months or more (Edmunds). The Consumer Financial Protection Bureau notes that a longer loan can mean a lower payment but more interest, and a higher risk of owing more than the car is worth.

The calculator uses the same rate for every length. Lenders often charge more for longer loans, so if you have a quote for each length, try each one. Which length suits you is your choice.

If your old car is worth less than what you still owe on it, the difference does not disappear when you trade it in. It is usually added to the new loan and charged interest with the rest, unless you pay it in cash. In Q2 2026, 29.6% of new-car trade-ins were worth less than the loan on them, by $6,884 on average (Edmunds).

Enter what the dealer gives you for your old car and what you still owe on it. When you owe more, the answer shows how much of your new loan is old-car debt and what it costs in interest. To estimate what paying the gap in cash would do, add it to your down payment.

A car can lose value faster than the loan goes down, especially with a small down payment and a long loan. A new car usually loses value fastest in its first years (Experian), while in the example you still owe $20,673 of the $25,000 after a year. If you sell or trade the car early, you may owe more than it is worth.

If the car is stolen or totaled, insurance usually pays what the car is worth, not what you owe. GAP coverage is sold to cover some or all of that difference, depending on the contract; it is one of the optional add-ons. The calculator does not know your car’s future value, so it shows no number for this.

The 7% starting rate is an average for a new car. Average rates for used cars are higher: 10.5% in Q2 2026, when the new-car average was also 7.0% (Edmunds). Your credit is one of the biggest factors, along with the lender and the loan terms. Average new-car rates in Q2 2026 ran from 4.41% for the strongest credit scores to 16.11% for the weakest (Experian). On the $25,000 example over 60 months, 4.41% is $465 a month and about $2,903 in interest; 16.11% is $609 a month and about $11,565.

Your offer may show an APR: the yearly cost of the loan, including some fees, so it can be higher than the interest rate. Use the rate from your offer. If you enter the loan’s fees under “Fees and add-ons”, use the rate without those fees, so they are not counted twice. Getting a rate quote from a bank or credit union before you visit the dealer gives you a number to compare (Consumer Financial Protection Bureau).

A 0% offer adds no interest, but it may replace a cash rebate. To compare, run the calculator twice: once at 0% with the full price, once at another lender’s rate with the price minus the rebate (or with the rebate added to your down payment).

Each month, interest is charged on what you still owe: the yearly rate divided by 12. The rest of the payment goes toward the loan. In the example, of the first $495 payment, $146 is interest and $349 goes toward the loan. The interest share falls as the balance falls.

After one year you have paid $5,940 and still owe $20,673. Under your answer, “See how what you owe goes down” shows this month by month for your own loan.

Paying more than the payment shortens the loan and lowers the interest, if the extra goes to what you owe. In the example, $100 extra a month pays the loan off in 49 months, 11 sooner, with about $3,763 in interest, $939 less.

Lenders handle extra payments in different ways: some apply them to what you owe, others to your next payments. You can check how your lender applies extra payments and whether paying early has a charge. Put the amount under “Extra payment each month” in More options.

Already have a car loan? The Debt Payoff Calculator shows when it would be paid off and what extra payments change.

Sales tax and fees depend on your state and your dealer, so the calculator does not guess them. Type the amounts from your offer under More options, then choose whether you pay them on the day or add them to the loan. If the price you typed already includes them, leave those fields empty.

Many states lower the sales tax when you trade in a car, but not all. Check your state’s rule or your offer.

Try both questions. In “What will my payment be?”, switch between loan lengths and watch the payment and the interest move in opposite directions. Raise the rate by a few points to see what a higher offer would cost.

In “What car price fits my payment?”, the example starts at $500 a month with $5,000 down at 7%. That covers a car of about $30,250 over 60 months, $25,880 over 48 months, or $34,327 over 72 months, with more interest at each longer length.

Know just the loan amount? The Loan Payment Calculator starts from there. Could you save for the car instead? The Savings Goal Calculator shows how long that would take. All our calculators are on the financial calculators page.

It assumes a fixed rate for the whole loan, interest worked out once a month, the same payment every month, and an extra payment that goes straight to what you owe. Some lenders work out interest by the day, so payment dates can change the actual interest. It does not include sales tax, fees or add-ons unless you type them. It does not include insurance, fuel, upkeep or registration after the purchase: the cost of owning the car is more than the payment.

It doesn’t know your budget, so it can’t say whether a payment is affordable. It doesn’t know whether a lender will approve your loan, the rate it will offer you, your state’s tax rules, what your car will be worth later, or the rules of your contract. It doesn’t cover leases, balloon loans, or UK car finance such as hire purchase (HP) and personal contract purchase (PCP).

It shows what your numbers say. The decision stays with you.