The average new car loan in 2026 is $40,000 at 7.1% for 68 months, resulting in a $620 monthly payment and $2,160 in total interest. But stretching to 72 or 84 months — now offered by most dealers — drops the payment while dramatically increasing total cost. That same $40K at 84 months costs $3,800 more in interest and leaves you underwater on the loan for years. This calculator shows you exactly what different loan terms, rates, and down payments mean for your monthly budget and total cost of ownership.
Auto Loan Calculator
Calculate monthly payments, total interest, and payoff schedule.
Auto Loan Calculator Comparison
Monthly payments at various rates
| Rate | Monthly Payment | Total Interest | Total Paid |
|---|---|---|---|
| 5% | $660 | $4,630 | $39,630 |
| 5.5% | $669 | $5,112 | $40,112 |
| 6% | $677 | $5,599 | $40,599 |
| 6.5% | $685 | $6,089 | $41,089 |
| 7% | $693 | $6,583 | $41,583 |
| 7.5% | $701 | $7,080 | $42,080 |
How to Use This Calculator
- Enter the vehicle price or total amount financed after down payment and trade-in
- Set the interest rate from your pre-approval or dealer offer
- Choose the loan term — 36, 48, 60, or 72 months
- View your monthly payment, total interest, and total cost of the loan
- Compare different scenarios to find the sweet spot between affordable payments and reasonable total cost
How It Works
This calculator uses the standard amortization formula to compute your auto loan calculator payment.
The basic rule:
- Monthly Payment = P × [r(1+r)^n] / [(1+r)^n – 1]
- r = annual interest rate ÷ 12
- n = loan term × 12 (total monthly payments)
- Total Interest = (Monthly Payment × n) – Principal
Results are estimates. Actual payments may vary based on fees, insurance, and other factors.
Tips & Considerations
- Get pre-approved at your bank or credit union before visiting the dealer. Dealer financing is convenient but typically 1-2% higher than direct lender rates.
- The 20/4/10 rule: put 20% down, choose a 4-year term, and keep total car costs under 10% of gross income.
- Gap insurance is essential if you put less than 20% down. If your car is totaled, you could owe more than the insurance payout without it.
- A $0 down, 84-month loan on a depreciating asset means you are underwater (owe more than the car is worth) for the first 3-4 years.
Frequently Asked Questions
How does my credit score affect my auto loan rate?
Credit scores above 720 typically get the best rates (3-5% APR). Scores below 600 may see rates of 10-20% or higher. Even a 1% rate difference can save thousands over the loan term.
Should I choose a longer or shorter loan term?
Shorter terms (36-48 months) mean higher monthly payments but far less total interest. A 72-month loan may seem affordable monthly but can cost thousands more overall and leave you underwater on the loan.
Does a down payment really matter?
Yes. A 20% down payment avoids being upside-down on your loan, may get you a better interest rate, and significantly reduces total interest paid over the life of the loan.