Auto Loan Calculator
Calculate your monthly car payment from vehicle price, trade-in, down payment, and sales tax.
Try an example
$526.13
About this calculator
What Is an Auto Loan Calculator?
An auto loan calculator estimates the monthly payment and total cost of financing a car. Enter the vehicle price, your down payment or trade-in, the loan term and the interest rate, and it shows the amount you will borrow, the monthly payment, and how much interest you will pay in total. It is built mainly for typical U.S. car purchases, but the math works for any fixed-rate vehicle loan. Run the numbers before you visit a dealership so you walk in knowing what fits your budget.
How Auto Loans Work
An auto loan is a secured loan: the car itself is the collateral. You repay principal and interest in equal monthly installments, usually over 36, 48, 60, 72 or 84 months. If you stop paying, the lender can repossess the vehicle. The payment is the standard amortization formula, M = P × [r(1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1], with P as the amount financed, r the monthly rate and n the number of months.
Worked Example
A $32,000 vehicle with a $5,000 trade-in, $2,000 down, 7% sales tax, financed at 6.5% APR over 60 months, comes to $526.13/month. Sales tax adds $1,890 (applied to the price minus the trade-in), bringing the amount financed to $26,890 — with $4,678.02 in total interest over the loan.
What Goes Into the Total Cost
- Vehicle price and any optional extras you finance.
- Sales tax, title, registration and dealer fees, which can add several percent on top of the sticker price.
- Interest — the cost of borrowing over the term.
- Insurance, fuel and maintenance, which are not part of the loan but are part of owning the car.
Dealer Financing vs. Direct Lending
With direct lending, you get pre-approved by a bank, credit union or online lender first and arrive at the dealer with financing in hand, which strengthens your negotiating position. With dealer financing, the dealership arranges the loan with its partner lenders, which is convenient and sometimes comes with promotional rates, but the rate may include a markup. Comparing at least one outside quote against the dealer's offer is a smart habit.
Choosing the Loan Term
Longer terms lower the monthly payment but raise the total interest, and they raise the risk of owing more than the car is worth because vehicles lose value quickly. A larger down payment, a shorter term and a good credit score are the three biggest ways to reduce what a car really costs you. To compare a payment with other borrowing, use the Loan Calculator, and plan the upfront cash with the Down Payment Calculator.
Worked example
A $32,000 car with a $5,000 trade-in, $2,000 down, and 7% sales tax leaves $26,890 financed. At 6.5% APR over 60 months, that's about $526/month — roughly $31,562 total, including about $4,672 in interest.
Frequently asked questions
How is sales tax handled here?
Tax is calculated on the vehicle price minus your trade-in value (how most US states tax a trade-in), then added to the amount financed — check your state's exact rule, since a few tax the full price regardless of trade-in.
Does a bigger trade-in always lower my payment?
Yes — trade-in value reduces both the taxable amount and the amount financed, so it lowers your payment twice over compared to the same cash discount.
Should I finance for longer to lower my payment?
A longer term does lower the monthly payment, but you'll pay more total interest and may owe more than the car is worth for longer — shorter terms cost less overall if the payment fits your budget.
Does this include registration or dealer fees?
No — just the vehicle price, trade-in, down payment, sales tax, and financing. Add any registration, title, or dealer fees to your budget separately.
