Auto Loan Calculator
See what a car will really cost per month. Enter the price, any down payment or trade-in, your state sales tax and the loan terms to get the monthly payment, total interest and the full cost of the vehicle.
Result
- Amount financed
- $32,450.00
- Sales tax
- $2,450.00
- Total interest
- $5,645.29
- Total loan payments
- $38,095.29
- Total cost of vehicle (loan + down payment + trade-in)
- $43,095.29
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | $5,676.95 | $1,942.10 | $26,773.05 |
| 2 | $6,057.15 | $1,561.91 | $20,715.89 |
| 3 | $6,462.81 | $1,156.25 | $14,253.09 |
| 4 | $6,895.64 | $723.42 | $7,357.45 |
| 5 | $7,357.45 | $261.61 | $0.00 |
What this auto loan calculator does
A car loan is a fixed-rate amortizing loan, but the amount you finance is more than the sticker price: sales tax and fees are added, while your down payment and trade-in are subtracted. This calculator builds that amount, then applies the standard loan payment formula to show the monthly payment and the interest you will pay over the term.
How the amount financed is calculated
Amount financed = price + sales tax + fees − trade-in − down payment, where sales tax is charged on (price − trade-in) in most states.
Example: a $35,000 car with $5,000 down, no trade-in and 7% sales tax. Tax is 35,000 × 0.07 = $2,450, so the amount financed is 35,000 + 2,450 − 5,000 = $32,450. At 6.5% for 60 months the monthly rate is 0.005417 and the payment is 32,450 × 0.005417 ÷ (1 − 1.005417−60) = $634.92. Sixty payments total $38,095.29, so the loan costs $5,645.29 in interest, and the car costs $43,095 in all once the down payment is counted.
How to use this calculator
- Enter the negotiated price of the vehicle, not the MSRP.
- Add your cash down payment and the value the dealer offers for your trade-in.
- Enter your state and local sales tax rate and any fees you plan to finance.
- Type the interest rate from your pre-approval or the dealer's offer and pick the term.
Tips for a cheaper car loan
- Put 20% down on a new car to offset the drop in value during the first year.
- Keep the term at 60 months or less. Longer loans look affordable but cost far more in interest.
- Get pre-approved so dealer financing has to beat a real offer.
- Watch the total cost, not the monthly payment. Dealers can hit any payment target by stretching the term.
Fuel is the other big running cost; estimate it with the fuel cost calculator. For other borrowing see the general loan calculator.
Frequently asked questions
Is sales tax charged on the trade-in value?
In most US states the trade-in value is subtracted from the price before sales tax is applied, which is how this calculator works. A few states (for example California and Virginia) tax the full price. The down payment never reduces the taxable amount; it only reduces the amount you finance.
Should I choose a longer term to lower the payment?
A longer term lowers the monthly payment but raises total interest and keeps you in debt longer, often beyond the point where the car is worth less than the loan. Compare 48 and 72 months above: the payment falls, but total interest climbs noticeably.
What rate can I expect?
Rates depend mainly on your credit score, the loan term and whether the car is new or used. Borrowers with excellent credit typically pay several points less than those with fair credit. Get a pre-approval from a bank or credit union before visiting the dealer so you have a rate to compare against.
Does the calculator include registration and dealer fees?
Use the "Fees" field for documentation, title and registration charges you plan to roll into the loan. If you pay them in cash, leave the field at zero. Extended warranties and gap insurance should also be added here if financed.