Car Loan Calculator
Calculate your exact monthly car payment, total interest paid, and full amortization schedule — including state sales tax, trade-in value, and dealer fees. Free, instant, and no sign-up required.
Total purchase price before down payment
Cash you pay upfront
Dealer credit for your current vehicle
Check your bank or credit union pre-approval
Shorter = less interest; longer = lower payment
Applied to (price − trade-in)
Documentation, registration, and title fees
How the Car Loan Calculator Works
The calculator uses the standard amortizing loan formula to compute your monthly payment to the cent, then builds the full payment-by-payment schedule showing how each payment splits between principal and interest.
- 1
Loan principal
Principal = vehicle price − down payment − trade-in value + sales tax (on taxable amount) + financed fees. Enter $0 for fees you're paying in cash at signing.
- 2
Monthly payment formula
Payment = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ − 1], where P is the principal, r is the monthly interest rate (APR ÷ 12), and n is the number of months. For 0% APR loans the payment is simply P ÷ n.
- 3
Amortization schedule
Each row shows: how much of that month's payment reduces the principal (early payments are mostly interest), how much is interest (balance × monthly rate), and the remaining balance after the payment.
- 4
Total cost
Total paid = monthly payment × number of months. Total interest = total paid − principal. The breakdown bar shows the proportion visually so you can see at a glance how much of every dollar goes to interest.
Tips to Lower Your Car Loan Cost
- Put down at least 20% — A 20% down payment keeps you out of negative equity (owing more than the car's worth) and reduces the principal enough to meaningfully lower both payment and total interest.
- Get pre-approved before shopping — A bank or credit union pre-approval gives you a benchmark APR. Dealers often offer 0.5–2% higher rates than your pre-approval — knowing your rate gives you negotiating power.
- Choose the shortest term you can afford — The difference in total interest between a 60-month and 72-month $30,000 loan at 7% APR is over $1,600. Use the calculator to compare.
- Trade-in is taxed differently by state — Most states only apply sales tax to the price difference (vehicle price − trade-in value), not the full price. This is automatically handled in the calculator.
- Negotiate the vehicle price, not the payment — Dealers prefer to negotiate monthly payments (easy to hide higher total cost with a longer term). Always negotiate the out-the-door price first, then calculate the payment yourself.
- Run a VIN history check before buying — Buying a car with undisclosed title brands (salvage, flood, lemon law buyback) or accident damage can cost you thousands in repairs and lost resale value — often more than the interest on the loan.
2025 Average Car Loan APR by Credit Score
Use these figures as a benchmark when entering your APR. If your dealer quote is significantly higher than your credit score suggests, shop other lenders before signing.
| Credit Score | Credit Tier | New Car APR | Used Car APR |
|---|---|---|---|
| 781–850 | Super Prime | 5.2% | 6.8% |
| 661–780 | Prime | 6.5% | 8.9% |
| 601–660 | Near Prime | 8.9% | 13.5% |
| 501–600 | Subprime | 13.7% | 18.5% |
| 300–500 | Deep Subprime | 15.7% | 21.5% |
Approximate averages based on 2025 industry data. Actual rates vary by lender, state, and vehicle age.
Check the VIN Before You Finance
A car with a hidden salvage title or major accident history can depreciate 30–50% faster than a clean-title vehicle — wiping out any savings on the purchase price. Always run a free VIN check before signing the loan paperwork.
Frequently Asked Questions
- What is a good APR for a car loan in 2025?
- With excellent credit (720+), new car APRs run 4–6%; used cars are 1–3% higher. Credit unions typically offer rates 1–2% below dealer financing. Get a pre-approval from your bank or credit union before visiting the dealership.
- Should I pick a 60-month or 72-month loan?
- A 60-month loan costs less total interest but requires a higher monthly payment. Try both in the calculator — the interest difference on a $30,000 loan at 7% APR is over $1,600. The shorter term is better if you can afford the payment.
- Is it better to put more money down?
- Generally yes. A larger down payment reduces the principal, lowers monthly payments, saves interest, and protects you from going 'underwater' (owing more than the car is worth). Aim for at least 20% on new cars and 10% on used.
- How does a trade-in affect my loan?
- The trade-in value is subtracted from the vehicle price before calculating both the loan principal and (in most states) the sales tax. A higher-value trade-in reduces everything downstream. Check the Edmunds or KBB instant cash offer as a baseline before accepting a dealer trade-in quote.
- What's included in dealer/doc fees?
- Typical fees include documentation ($150–$800 depending on state), registration and title transfer ($100–$400), and dealer prep fees. Some states cap doc fees; others don't. These fees increase your loan principal if financed, so understand exactly what you're paying before signing.
Related VIN Checks
More tools to verify any vehicle's history
Found the Car? Check Its History First.
Before you finance, run a free VIN check to verify the title is clean, there’s no hidden accident damage, and the odometer hasn’t been rolled back.
Run a Free VIN Check