Calculate monthly payments, total interest, and full amortization schedule for USD, GBP, AUD and CAD auto loans.
How Car Loan Interest Works
Car loans use simple amortization — each monthly payment covers interest first, then the remaining goes to principal. Early payments are mostly interest; later payments are mostly principal.
The amortization schedule above shows exactly how each payment is split every month, and your remaining balance after each payment.
Frequently Asked Questions
What is a good interest rate for a car loan?+
In 2026, good credit (700+) typically gets 5–7% APR for new cars and 7–10% for used cars in the US. UK rates range from 5–9% APR. Australia averages 6–9% and Canada 6–8%.
Should I put more down payment?+
Yes — a larger down payment reduces your loan amount, monthly payments, and total interest paid. Aim for at least 20% down on a new car to avoid being "underwater" on the loan.
Is a shorter or longer loan term better?+
Shorter terms (36-48 months) mean higher monthly payments but much less total interest. Longer terms (72-84 months) lower monthly payments but you pay significantly more interest overall.
What is an amortization schedule?+
An amortization schedule shows every monthly payment broken down into principal and interest, plus the remaining loan balance after each payment. It helps you track exactly when your loan will be paid off.