Auto Loan Calculator (Car Loan Payment)
This free auto loan calculator works out your monthly car payment from the vehicle price, down payment, trade-in value, sales tax and loan rate. See the amount you actually finance and the total interest before you sign at the dealer.
Your result
What is an auto loan calculator?
An auto loan calculator estimates the monthly payment on a car loan. It starts from the price you agree with the seller, adds sales tax and any fees you choose to finance, subtracts your down payment and trade-in, and then applies the loan rate and term. It helps you see the real cost of a car before the dealer’s finance office shows you a monthly figure.
How to use this auto loan calculator
- Enter the vehicle price agreed with the seller.
- Add your down payment and the trade-in value of your old car, if any.
- Enter the sales tax rate and choose whether it applies to the full price or the price after trade-in.
- Add any fees you plan to finance, then the APR and term in months.
- Compare terms by changing the months – the auto loan calculator updates instantly.
Car loan formula
First the calculator finds how much you borrow, then applies the standard fixed-rate payment formula:
Amount financed = price + sales tax + fees − down payment − trade-in
Payment = L × i × (1 + i)n ÷ ((1 + i)n − 1)
- L = amount financed
- i = APR ÷ 12 ÷ 100
- n = term in months
Auto loan calculator worked example
A 30,000 car, 5,000 down, 3,000 trade-in, 7% sales tax on the full price, 7% APR for 60 months:
- Sales tax = 30,000 × 7% = 2,100
- Amount financed = 30,000 + 2,100 − 5,000 − 3,000 = 24,100
- Monthly payment ≈ 477.21
- Total interest ≈ 4,532.53 over five years
How loan length changes the cost
| Term | Monthly payment | Total interest |
|---|---|---|
| 36 months | 744.14 | 2,688.97 |
| 48 months | 577.10 | 3,601.02 |
| 60 months | 477.21 | 4,532.53 |
| 72 months | 410.88 | 5,483.44 |
| 84 months | 363.73 | 6,453.62 |
Stretching the same 24,100 loan from 36 to 84 months cuts the payment roughly in half but more than doubles the interest. Long loans also raise the risk of negative equity – owing more than the car is worth – because cars lose value fastest in the first years.
New vs used car loans
Lenders usually charge lower rates on new cars because they are worth more as security. Used car loans often have higher APRs and shorter maximum terms. Run the auto loan calculator with each rate you are offered to see whether a cheaper used car really costs less once interest is included.
Dealer financing vs bank loan
- Get pre-approved by a bank or credit union first so you know a fair rate.
- Ask the dealer to beat that rate; manufacturer promotions sometimes offer 0% APR.
- Watch for add-ons such as extended warranties and paint protection rolled into the loan.
- Negotiate the car price before discussing monthly payments.
Costs to budget for besides the payment
- Insurance – full coverage is usually required on a financed car.
- Registration, licence and inspection fees.
- Fuel and maintenance.
- Depreciation, if you plan to sell or trade in later.
Tip: a common guideline is the 20/4/10 rule – put at least 20% down, finance for no more than 4 years and keep total car costs under 10% of gross income.
Frequently asked questions
How is a car loan payment calculated?
The auto loan calculator finds the amount financed (price + tax + fees − down payment − trade-in) and applies the loan formula L × i × (1 + i)^n ÷ ((1 + i)^n − 1).
Is sales tax included in a car loan?
It can be. Many buyers roll sales tax and registration fees into the loan, which raises the amount financed. Paying them upfront lowers your payment and interest.
Does a trade-in reduce sales tax?
In many US states sales tax is charged on the price after the trade-in value is deducted, but not in all. Choose the matching option in the calculator.
What is a good APR for a car loan?
It depends on your credit score, the loan length and whether the car is new or used. Compare at least two or three lenders before choosing.
How much should I put down on a car?
Around 20% for a new car and 10% for a used car is a common guideline. A bigger down payment lowers the payment and reduces the risk of owing more than the car is worth.
Should I choose a longer term to lower my payment?
A longer term lowers the monthly payment but increases total interest and the chance of negative equity. Choose the shortest term you can comfortably afford.
What is negative equity on a car loan?
It means you owe more on the loan than the car is currently worth. It is common with long terms and small down payments.
Can I pay off my car loan early?
Most simple-interest car loans allow early payoff and you save the remaining interest. Check your contract for any prepayment penalty.
How much car can I afford?
Keep the total of payment, insurance and fuel within about 10–15% of your take-home pay. Use the calculator to test different prices.
Does this calculator work for leases?
No. Leases are priced on depreciation and a money factor. This auto loan calculator is for buying with a loan.
Sources
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