Last updated: August 22, 2026
Free Auto Loan Calculator
Enter a loan amount, interest rate, and term to see your estimated monthly payment and total interest cost. Comparing a few different loan terms side by side is one of the most useful things this calculator can show you — a longer term lowers the monthly payment but usually increases total interest paid significantly.
| Monthly payment: | $0 |
| Total interest paid: | $0 |
| Total amount paid: | $0 |
How to Use This Calculator
- Enter the loan amount — the price of the car minus your down payment and any trade-in value.
- Enter the interest rate (APR) you expect to qualify for.
- Enter the loan term in months (commonly 36, 48, 60, or 72 months).
- The calculator shows your estimated monthly payment, total interest, and total amount paid over the life of the loan.
Why a Longer Term Isn't Automatically the Better Deal
A longer loan term lowers your monthly payment, which can make a car feel more affordable month to month — but it also means paying interest for a longer period, which increases the total interest cost, often significantly. Try running the same loan amount and rate at 48, 60, and 72 months to see the total interest difference directly. A shorter term with a higher monthly payment frequently costs meaningfully less overall, if the higher payment fits your budget.
| Term | Monthly Payment | Total Interest | Total Paid |
|---|---|---|---|
| 36 months | $771.93 | $2,789.39 | $27,789.39 |
| 48 months | $598.66 | $3,735.49 | $28,735.49 |
| 60 months | $495.03 | $4,701.80 | $29,701.80 |
| 72 months | $426.23 | $5,688.21 | $30,688.21 |
On this $25,000 example, stretching from 36 to 72 months roughly doubles the monthly payment savings on paper but more than doubles the total interest cost — going from 36 to 72 months increases total interest by over $2,800 while cutting the monthly payment by less than half. This is the tradeoff worth running with your own real numbers above before choosing a term.
New vs. Used Car Loan Rates
Used car loans typically carry higher interest rates than new car loans, often by a meaningful margin, since lenders view used vehicles as higher risk — they depreciate faster and have less predictable resale value backing the loan. This gap has narrowed somewhat in recent years as new car prices have climbed, but it's still worth requesting a specific quote for the exact vehicle (new or used) rather than assuming a generic "average rate" applies to your situation.
How Your Interest Rate Is Determined
Auto loan rates are influenced by your credit score, the loan term, whether the car is new or used, and the lender itself. See our complete credit guide for how to check and improve your score before applying, since even a modest rate difference can meaningfully affect your total interest cost over the life of a multi-year loan.
How Your Down Payment Affects the Numbers
Every dollar of down payment reduces the loan amount you finance, which reduces both your monthly payment and the total interest charged over the life of the loan — try entering a lower loan amount above to see the effect directly. Beyond the math, a larger down payment also reduces the risk of being "underwater" (owing more than the car is worth) in the early months of the loan, since new cars typically depreciate fastest in their first year or two of ownership. If you're financing close to 100% of the purchase price, ask your lender about gap insurance, which covers the difference between the loan balance and the car's value if it's totaled before the loan is paid off.
Frequently Asked Questions
Should I choose a shorter or longer loan term?
It depends on your budget and priorities — a shorter term costs less in total interest but requires a higher monthly payment; a longer term lowers the monthly payment but increases total interest paid. Run both through this calculator with your actual numbers to see the specific tradeoff for your situation.
Is a used car loan rate always higher than a new car rate?
Usually, yes, though the gap varies by lender and has narrowed in recent years. Request a specific quote for your exact vehicle rather than assuming a generic average rate applies.
Does this calculator account for taxes and fees?
No — it calculates based on the loan amount you enter, which should already reflect the car's price plus any taxes and fees financed, minus your down payment and trade-in value, if applicable.
Does this calculator save my data?
No — it runs entirely in your browser, and the numbers you enter aren't sent to or stored on our servers.
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Where to Go Next
Related guides on ClearCents:
Compare Terms Before You Sign
Run a few different term lengths through this calculator before agreeing to a specific loan offer — the difference in total interest cost between a 60-month and 72-month term is often larger than people expect.
Want to strengthen your rate before applying? Our guide to raising your credit score fast covers what actually moves the number quickly.