Auto Loan Calculator
Use this auto loan calculator to estimate your monthly car payment, total amount financed, total interest, and total cost of the loan. You can also include trade-in value, taxes, fees, and an optional extra monthly payment to see how they change your results.
Last updated:
Auto Loan Inputs
Formula: M = P × [r(1+r)^n] / [(1+r)^n − 1]
Amount financed = Vehicle Price − Down Payment − Trade-In Value + Sales Tax + Fees
Estimated monthly payment
$0.00
Sales tax
$0.00
Amount financed
$0.00
Total paid
$0.00
Total interest
$0.00
Payoff months
0
Interest saved
$0.00
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Auto Loan Print Summary
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- Vehicle price
- $0.00
- Down payment
- $0.00
- Trade-in value
- $0.00
- Sales tax
- $0.00
- Fees
- $0.00
- Amount financed
- $0.00
- APR
- 0.00%
- Loan term
- 0 months
- Monthly payment
- $0.00
- Total interest
- $0.00
- Estimated payoff months
- 0
Educational estimate only. Actual auto loan terms, taxes, fees, and lender policies may differ.
What's included (and what isn't)
- Sales tax is estimated on the vehicle price minus trade-in (the typical taxable basis in many U.S. states).
- Fees you enter are added to the amount financed; they are not paid separately at signing.
- Down payment and trade-in value reduce the financed principal.
- Interest is calculated using a simple amortization schedule at the APR you enter.
- GAP coverage, extended warranties, dealer add-ons, and dealer discounts are not modeled.
- Actual lender quotes may differ based on credit score, loan-to-value, and lender pricing rules.
Dealer financing vs. bank or credit union loan
Dealer financing is convenient because the paperwork happens at the dealership, and manufacturers sometimes offer promotional APRs on specific models. Banks and credit unions often advertise slightly higher headline rates but may have fewer add-ons and are less likely to mark up the rate above what you actually qualify for.
Getting pre-approved with your bank or credit union before visiting the dealer gives you a baseline APR to compare any dealer offer against. Whichever is lower after all fees is usually the better choice.
Affordability and related tools
A common guideline is to keep total monthly vehicle costs (loan payment + insurance + fuel + maintenance) under roughly 10%–15% of take-home pay. Use these tools to check the full picture:
- Paycheck Calculator — check the payment against take-home pay.
- Mortgage Calculator — compare against housing costs in your budget.
- Compound Interest Calculator — see what a larger down payment could grow to instead.
Formula
M = P × [r(1+r)^n] / [(1+r)^n − 1]
Where M = monthly payment, P = loan principal (price + tax + fees − down − trade-in), r = monthly interest rate (APR ÷ 12), n = number of months.
How to calculate
- Start with the vehicle price.
- Subtract trade-in value if applicable.
- Add estimated sales tax and fees.
- Subtract the down payment to get the financed amount.
- Apply APR and loan term to estimate the monthly payment.
- Add an optional extra payment to see faster payoff and interest saved.
Worked example
Suppose you enter:
- Vehicle price: $32,000
- Down payment: $5,000
- Trade-in value: $2,000
- Sales tax rate: 7%
- Fees: $800
- APR: 6.5%
- Loan term: 60 months
Taxable amount = $32,000 − $2,000 = $30,000. Sales tax = $30,000 × 7% = $2,100. Amount financed = $32,000 − $5,000 − $2,000 + $2,100 + $800 = $27,900.
At 6.5% APR for 60 months, the estimated monthly payment is about $545.90. Adding an extra $100 each month can shorten the payoff and reduce total interest.
Frequently asked questions
What is included in an auto loan payment?
An auto loan payment usually includes principal and interest. Depending on how you structure the financing, taxes and fees may also be included in the amount financed.
Does a longer loan term reduce the monthly payment?
Yes. A longer term usually reduces the monthly payment, but it often increases the total interest paid over the life of the loan.
Does a bigger down payment help?
In many cases, yes. A larger down payment reduces the amount borrowed, which can lower both the monthly payment and the total interest paid.
What happens if I pay extra each month?
Extra monthly payments may help you pay off the loan faster and reduce total interest, depending on how your lender applies additional payments.
Is this calculator exact?
No. This calculator provides estimates. Actual loan terms, lender fees, taxes, and payment schedules may differ.
Related calculators
This auto loan calculator provides estimates only. Actual loan offers may differ based on taxes, lender fees, credit profile, dealer add-ons, GAP coverage, and exact loan terms.