What is APR on a car loan?

APR is the annual percentage rate. On this page you enter that yearly rate, not a monthly rate. The calculator converts it to a monthly rate by dividing by 12. A lender’s disclosed APR can include certain fees; this estimate uses the number you type in the APR field.

Monthly car payment

Auto Loan Calculator

Q: How do you calculate an auto loan payment?

Subtract the down payment and trade-in from the vehicle price. That is the amount financed. The monthly payment is a fixed amortizing installment: the calculator divides the APR by 12 to get a monthly rate, then spreads principal and interest across the term in months. At 0 percent APR, the payment is the amount financed divided by the number of months.

Q: Does this Auto Loan Calculator include sales tax and fees?

No. Sales tax, title, registration, documentation fees, add-on products, and insurance are not in the payment. If a dealer rolls those items into the loan, add them to the vehicle price before you estimate, or treat the dealer’s amount financed as the price minus down payment and trade-in.

Q: How do you calculate the finance charge on an auto loan?

The finance charge on this page is the estimated interest over the full term: the total of monthly payments minus the amount financed. It is already inside the payment. It is not a separate bill added after the payment. The Auto Loan Interest Calculator states that finance charge in dollars and as a percent of the total of payments.

Q: How do you calculate interest on an auto loan?

Estimate the fixed monthly payment, multiply by the term, and subtract the amount financed. The remainder is the estimated interest if you keep the loan to the last month. Use the Auto Loan Interest Calculator when you want that figure called out next to the payment.

Use this Auto Loan Calculator to estimate a monthly car payment in US dollars before you sit down with a dealer. Enter the vehicle price, the APR, the term in months, the down payment, and any trade-in. The result is a fixed payment on a typical U.S. auto loan. It is a planning number, not a credit decision.

Loan details

Vehicle price (USD)

Enter the agreed price before cash down. If you already know tax and fees will be financed, add those dollars here.

APR (percent)

Enter the annual percentage rate. Do not enter a monthly rate.

Term (months)

Common U.S. terms are 36, 48, 60, 72, and 84 months.

Down payment (USD)

Enter 0 if you are not putting cash down.

Trade-in value (USD)

Enter the net trade-in credit after any amount you still owe, or enter 0.

Enter the vehicle price, APR, and term. The down payment and trade-in can stay at 0. Then choose Estimate payment.

How to calculate an auto loan payment

The calculator starts with the amount financed: vehicle price minus down payment minus trade-in. That is the principal. Each month you pay the same dollar amount. Part of that amount reduces the principal. The rest is interest.

When the APR is above zero, the monthly rate is the APR divided by 12. The payment uses the standard U.S. amortizing formula, so early payments are heavier on interest and later payments are heavier on principal. When the APR is 0 percent, there is no interest. The payment is simply the amount financed divided by the number of months.

A longer term lowers the monthly payment and usually raises the interest you pay if you keep the loan to the end. You can see that trade-off by changing only the term and estimating again. For a side-by-side look at interest, use the Auto Loan Interest Calculator.

What this car payment does not include

A dealer’s “out-the-door” number is often higher than the sticker. This Auto Loan Calculator does not add sales tax, title, registration, documentation fees, extended warranties, GAP, or prepaid interest. It also leaves out insurance, fuel, and maintenance.

If those extras will be financed, fold them into the vehicle price before you estimate. If the dealer quotes an amount financed, you can treat that quote as price minus down payment minus trade-in and skip the extras you already counted.

APR on a car loan

APR is the annual percentage rate the lender discloses. You enter that yearly percent here. The calculator does not look up live bank rates and does not guess your credit tier. A 0 percent promotional APR is allowed; the payment then ignores interest.

Two loans with the same advertised interest rate can still have different annual percentage rates if fees are treated differently. This page uses the APR you enter as the rate in the payment formula. It does not rebuild a Truth in Lending disclosure.

Examples you can run on this page

You agree on $32,000, put $4,000 down, and have no trade-in. At 6.49 percent APR for 60 months you finance $28,000. The estimated payment is $547.72 a month. The total of payments is $32,863.26, so estimated interest is $4,863.26.
An $18,500 car at 0 percent APR for 36 months, with nothing down, has a payment of $513.89. Interest over the term is $0.00 because the APR is 0 percent.
A $42,000 price, $6,000 down, a $2,500 trade-in, 9.25 percent APR, and 72 months finances $33,500. The estimated payment is $608.02. Estimated interest over the term is $10,277.47.

Auto loan payment questions

How do you calculate an auto loan payment?

Subtract the down payment and trade-in from the price. That principal is amortized over the term at the monthly rate (APR divided by 12). The result is one fixed monthly payment in US dollars. A full walkthrough is in How to calculate an auto loan payment.

Does this Auto Loan Calculator include sales tax and fees?

No. Tax, title, registration, documentation fees, and add-ons are left out unless you add those dollars to the vehicle price yourself. The longer explanation is in Are taxes and fees included in a car loan?

How do you calculate the finance charge on an auto loan?

On this page the finance charge is the estimated interest: total of payments minus the amount financed. It is already part of the monthly payment. The Auto Loan Interest Calculator states that amount in dollars and as a percent of the total of payments.

How do you calculate interest on an auto loan?

Estimate the payment, multiply by the term, and subtract the amount financed. The remainder is the estimated interest if you keep the loan to the last month. Open the Auto Loan Interest Calculator for that split.

Can I estimate a payment with no money down?

Yes. Leave the down payment and trade-in at 0. The amount financed then equals the vehicle price you enter.

Other calculators on this site

How much car you can afford — start from a monthly budget and work back to a maximum price.
Auto loan interest and total cost — the same loan, with interest called out as a share of the payments.
Car down payment comparison — one price and APR with three different down payments.
Lease vs buy — monthly amounts and cash totals only, not legal advice.
Auto Loan Amortization Calculator — each month’s interest, principal, and remaining balance.

Guides

How to calculate an auto loan payment — amount financed, monthly rate, and the fixed installment.
Are taxes and fees included in a car loan? — what the monthly payment covers, and what it leaves out.
How much should you put down on a car? — 0, 10, and 20 percent on the same price.
How these estimates work — the numbers the calculators use, and the limits.