Enter the vehicle price, down payment, trade-in value (if any), sales tax rate, interest rate, and loan term. The calculator instantly shows your monthly payment, total interest, and total cost of the vehicle including financing costs.

The amortization schedule below the results shows the year-by-year principal and interest breakdown, so you can see exactly when you'll build equity in the vehicle.

An auto loan is a secured loan where the vehicle serves as collateral. Loan terms for new cars typically range from 36 to 72 months, though some lenders offer up to 84 months. While longer terms lower your monthly payment, they significantly increase the total interest paid.

New vs. Used Car Loan Rates

Interest rates on used car loans are typically 1-2 percentage points higher than new car loans because older vehicles depreciate faster. As of 2026, average new car loan rates range from 5% to 8%, while used car rates range from 7% to 11%, depending on credit score and lender.

The Upside-Down Loan Risk

Cars depreciate rapidly — often losing 20-30% of their value in the first year. If your loan balance exceeds the car's market value, you're "upside down" or "underwater." This is especially risky with small down payments and long loan terms. A larger down payment or shorter term helps you build equity faster than the car depreciates.

Total Cost of Ownership

Your monthly payment is just one piece of the cost. Factor in insurance premiums, fuel, maintenance, registration, and potential repairs. A more expensive car with a lower interest rate may cost less overall than a cheaper car financed at a high rate.