Auto Loan Calculator

Use this car loan calculator to estimate your vehicle payment before you talk to a dealer or a bank. Enter the vehicle price, loan term, interest rate, down payment, trade-in and fees to see your monthly payment, the total interest and the full cost of the car. If you already know your monthly budget, switch to the Monthly Payment tab. The calculator then works backward to find the highest car price you can afford.

The math behind this car loan calculator

Every result comes from the standard formula for a fixed-rate installment loan. Banks in every country use the same formula, so the tool works as a vehicle loan calculator wherever you buy.

Step 1: The amount you borrow. Loan amount = car price − cash incentives − down payment − trade-in value + amount still owed on the trade-in. If you tick "Include taxes and fees in loan", the sales tax and fees are added as well.

Step 2: The sales tax. Sales tax = tax rate × (car price − trade-in value). The trade-in is taken off first, because most US states only tax the difference.

Step 3: The monthly payment. Payment = P × r ÷ (1 − (1 + r)^−n). P is the loan amount, r is the yearly interest rate divided by 12, and n is the number of months. For a $40,000 loan at 5% over 60 months, r = 0.05 ÷ 12 = 0.0041667, and the payment is $754.85.

Step 4: The schedule. Each month, interest = remaining balance × r, and the rest of the payment reduces the balance. In month 1 of the example, interest is $40,000 × 0.0041667 = $166.67, so $588.18 goes to principal. The balance falls every month, so the interest part gets smaller and the principal part gets bigger. This is why the Interest line in the chart flattens over time.

Step 5: The Monthly Payment tab works backward. It uses the present value formula: loan amount = payment × (1 − (1 + r)^−n) ÷ r. Then it adds back your down payment, trade-in and incentives to find the car price. With $750 a month, 60 months and 5%, you can borrow $39,743.03. With the default values, that means a car price of $49,743.03.

APR or interest rate? The rate box takes the yearly nominal rate. In the US, the APR on a car loan with no extra finance charges is the monthly rate × 12, so you can enter it directly. In the UK and the EU, the APR (effektiver Jahreszins in Germany) already includes monthly compounding. Convert it first: nominal rate = 12 × ((1 + APR)^(1/12) − 1). For example, 8.9% APR is about 8.56% nominal.

Car loan EMI. In India and some other countries, the fixed monthly payment is called the EMI (equated monthly installment). It is the same number as the payment in Step 3, so you can use this page as a car loan EMI calculator. Choose INR (₹) as the currency, and set Sales Tax to 0% if tax is already in the on-road price.

Auto loans in the United States

Most US buyers either finance through the dealer, who sends the application to several lenders, or get a loan from a bank or credit union before they shop. Getting pre-approved first is the better habit. Make a car payment estimate here first, so you know what you can afford. Then you arrive knowing your rate, and the dealer has to beat it. Dealers are allowed to add a markup to the rate the lender approves, and that markup is part of their profit.

Loan terms of 36 to 84 months are common. A longer term lowers the payment, but you pay more interest and you can owe more than the car is worth for years. This is called being "underwater" or having negative equity. If you put little money down or choose a long term, GAP insurance covers the difference between the insurance payout and your loan balance if the car is stolen or written off.

Sales tax depends on your state. Alaska, Delaware, Montana, New Hampshire and Oregon have no state sales tax. Most states tax the price after the trade-in, but some, such as California, tax the full price. Dealers also charge title, registration and documentation fees. Doc fees vary a lot, and some states cap them.

There is also a new federal tax deduction. For a new car with final assembly in the United States, bought for personal use with a loan taken out after December 31, 2024, you may deduct up to $10,000 of loan interest a year on your federal return for tax years 2025 to 2028. The deduction is reduced above $100,000 of income ($200,000 for joint filers). Check IRS guidance or ask a tax professional before you count on it.

Car finance in the United Kingdom

In the UK, 20% VAT is already in the car price, so set the Sales Tax box to 0%. There is no separate sales tax at the dealer. Vehicle Excise Duty (road tax) is a yearly cost and is not part of the loan. UK buyers usually choose one of three products:

• Hire purchase (HP): you pay a deposit and then fixed monthly payments. You own the car after the last payment, sometimes with a small "option to purchase" fee. This calculator models HP directly.
• Personal contract purchase (PCP): monthly payments are lower because a large part of the price is left as a final balloon payment, the Guaranteed Minimum Future Value (GMFV). At the end you pay the balloon and keep the car, hand the car back, or use any equity toward your next car. PCP deals have a yearly mileage limit and charges for extra miles and damage.
• Personal loan: an unsecured bank loan. You own the car from day one and can sell it whenever you want. Borrowers with good credit often get a lower rate than dealer finance.

UK law gives you strong rights. You have 14 days to withdraw from a credit agreement. Under the Consumer Credit Act 1974, you can end an HP or PCP agreement and hand the car back once you have paid half of the total amount payable (this is called voluntary termination). An advertised "representative APR" only has to be given to at least 51% of approved customers, so your own rate can be higher.

If you had car finance between April 2007 and November 2024 and the broker or dealer was paid commission, you may be owed money. The FCA has set up a compensation scheme, but parts of it were challenged in court in 2026. Check the FCA's motor finance page for the current position. Before you sign with any UK lender, you can check it on the FCA register.

Car loans in Germany (Autokredit)

In Germany, 19% VAT (Mehrwertsteuer) is already in the price, so set the Sales Tax box to 0%. Put the one-time registration costs (Zulassung) in the fees box. Kfz-Steuer (vehicle tax) and insurance are yearly costs outside the loan. German buyers usually choose between two routes:

• Bank car loan (Autokredit): a fixed-rate installment loan from a bank. Some banks keep the Zulassungsbescheinigung Teil II (vehicle registration document) as security until the loan is paid off. Others do not. The dealer is paid in full, so to the dealer you are a cash buyer and you can often negotiate a cash discount (Barzahlerrabatt).
• Dealer or manufacturer financing: carmaker banks such as VW Financial Services, BMW Bank and Mercedes-Benz Bank often advertise very low rates, sometimes 0%. You often pay for the low rate by giving up a discount. Many of these offers are balloon loans (Ballonfinanzierung or Drei-Wege-Finanzierung) with a large final payment.

German consumer credit rules protect you. Lenders must show the effektiver Jahreszins, and the rate in an advertised example must be one that at least two thirds of customers get (the Zwei-Drittel-Beispiel). You have 14 days to withdraw (Widerrufsrecht). You can repay early at any time, and the lender may charge at most 1% of the amount repaid early, or 0.5% if less than one year is left.

Real-world examples

Example 1: Choosing a loan term in Texas

Maria buys a $35,000 car in Texas. Her trade-in is worth $8,000, but she still owes $3,000 on it. She puts $4,000 down and pays $500 in fees. Texas sales tax is 6.25% of ($35,000 − $8,000) = $1,687.50. Her loan is $35,000 − $4,000 − $8,000 + $3,000 = $26,000 at 6.5%:

• 48 months: $616.59 a month, $3,596.26 total interest
• 60 months: $508.72 a month, $4,523.19 total interest
• 72 months: $437.06 a month, $5,468.19 total interest
• 84 months: $386.09 a month, $6,431.17 total interest

The 84-month loan is $230.50 a month cheaper than the 48-month loan, but it costs $2,834.91 more in interest. After two years on the 84-month loan, Maria still owes $19,732.31, which may be more than the car is worth. If she adds the tax and fees to a 60-month loan, she borrows $28,187.50 and pays $551.52 a month. Her interest rises to $4,903.75, which is $380.56 more than paying the tax and fees upfront.

Example 2: HP, PCP or personal loan in the UK

James wants a £25,000 car. He has a £3,000 deposit, so he needs £22,000 over 48 months:

• HP at 8.9% APR: £542.85 a month and £4,056.71 interest. He owns the car at the end, and he pays £29,056.71 in total.
• Personal loan at 6.4% APR: £518.89 a month and £2,906.65 interest. He pays £27,906.65 in total.
• PCP at 8.9% APR with a £10,000 final payment: only £367.40 a month, but the interest is £5,635.29, because the £10,000 stays borrowed for the whole term. To keep the car he pays £30,635.29 in total. If he hands it back, he has paid £20,635.29 to use the car for four years.

To check the HP and personal loan figures in this calculator, set Sales Tax to 0% and enter the nominal rate: 8.56% for 8.9% APR and 6.22% for 6.4% APR. For a balloon loan like PCP, the payment formula is: payment = (P − B ÷ (1 + r)^n) × r ÷ (1 − (1 + r)^−n), where B is the final payment.

Example 3: Low dealer rate or cash discount in Germany

Anna wants a €32,000 car. She has €6,000 for the down payment and wants to pay over 48 months:

• Dealer financing at 1.99% effective, no discount: she borrows €26,000, pays €563.76 a month and €1,060.31 interest. She pays €33,060.31 in total.
• Bank Autokredit at 5.49% effective, with an 8% cash discount: the price falls to €29,440. She borrows €23,440, pays €543.60 a month and €2,652.82 interest. She pays €32,092.82 in total.

The bank loan has two and a half times more interest, but Anna pays €967.49 less overall, and her monthly payment is lower too. Always compare the total cost, not only the rate.

Where to get an auto loan

These are well-known lenders in each region. The list is not a ranking or an endorsement, and rates change often and depend on your credit. Get quotes from at least three lenders, then compare the APR and the total cost in this auto loan calculator.

United States

• Bank of America: auto loans for new and used cars, and refinancing.
• Chase Auto: car financing through dealers in Chase's network, plus online car shopping.
• Capital One Auto Navigator: pre-qualify with a soft credit check, then buy at a participating dealer.
• U.S. Bank: auto loans and car financing from a large national bank.
• Truist: bank auto loans for new and used cars.
• Navy Federal Credit Union: auto loans for members of the military community and their families.
• Consumers Credit Union: credit union loans for new and used cars. You must become a member.
• DCU (Digital Federal Credit Union): credit union auto loans. You must become a member.
• Ally: one of the largest US auto lenders, working through car dealers.
• Autopay: online marketplace that compares auto refinance offers from several lenders.

United Kingdom

• Barclays: personal loans for buying a car, with an online loan calculator.
• Nationwide: car loans from the UK's largest building society.
• NatWest: car loans from a high-street bank.
• Santander UK: personal car loans.
• HSBC UK: personal loans you can use to buy a car.
• Zopa: online lender with PCP and HP car finance.
• Admiral: car finance to buy a car and pay monthly.
• Carmoola: online car finance you can arrange before you choose a car.
• Close Brothers Motor Finance: motor finance provided through car dealers.
• MotoNovo Finance: motor finance provided through car dealers.

Europe

• DKB (Germany): online Autokredit. You keep the vehicle registration document.
• Postbank (Germany): Autokredit with free special repayments. The bank keeps the vehicle registration document as security.
• Commerzbank (Germany): personal loans and car loans from a branch bank.
• TARGOBANK (Germany): Autokredit with quick payout.
• Volkswagen Financial Services (Germany and Europe): financing and leasing for Volkswagen Group cars through dealers.
• BMW Bank (Germany): financing and leasing for BMW and MINI cars.
• Mercedes-Benz Bank (Germany): financing and leasing for Mercedes-Benz cars.
• Mobilize Financial Services (Europe): car finance for Renault Group brands in many European countries.
• Cetelem (France): BNP Paribas consumer credit brand with car loans.
• Cofidis (France and Europe): consumer credit lender with loans you can use for a car.