Auto Loan Calculator

Calculate car loan payments, total interest costs, and compare financing options. Factor in trade-in value, down payment, and taxes to get accurate monthly payment estimates.

Vehicle & Loan Details

$
Please enter a valid vehicle price between $1,000 and $500,000.
MSRP or negotiated price of the vehicle
$
Please enter a valid down payment amount.
Cash payment made upfront
$
Please enter a valid trade-in value.
Value of your current vehicle
%
Please enter a valid sales tax rate between 0% and 15%.
Local sales tax percentage
%
Please enter a valid interest rate between 0.1% and 30%.
Annual Percentage Rate (APR)
Duration of the auto loan
$
Please enter a valid fee amount.
Documentation, registration, etc.
When loan payments begin

Loan Breakdown

Monthly Payment
$0
principal + interest
Loan Amount
$0
amount financed
Total Interest
$0
over loan term
Total Cost
$0
vehicle + financing

Cost Breakdown

Vehicle Price: $0
Sales Tax: $0
Additional Fees: $0
Down Payment: -$0
Trade-in Value: -$0
Amount Financed: $0

Payment Schedule Preview

Payment # Date Payment Principal Interest Balance
Showing first 12 payments. Download CSV for complete schedule.

Complete Auto Loan Guide

How to Use This Auto Loan Calculator

Our comprehensive auto loan calculator helps you understand the true cost of financing a vehicle purchase. Whether you're buying new or used, this tool factors in all aspects of auto financing including trade-ins, down payments, taxes, and fees to give you accurate monthly payment estimates and total cost projections.

Step-by-Step Usage Instructions:
  1. Enter Vehicle Price: Input the total price of the vehicle you're considering. This should be the negotiated price or MSRP, not including taxes and fees which are calculated separately.
  2. Set Down Payment: Enter the amount you plan to pay upfront. A larger down payment reduces your loan amount and monthly payments while potentially qualifying you for better interest rates.
  3. Add Trade-in Value: If you're trading in your current vehicle, enter its estimated value. This amount will be subtracted from your total cost, reducing the loan amount needed.
  4. Configure Tax Rate: Enter your local sales tax rate. This varies by state and locality, typically ranging from 0% to 10% or more in some areas.
  5. Set Interest Rate: Input the APR offered by your lender. Shop around with multiple lenders, as rates can vary significantly based on your credit score and the lender's terms.
  6. Choose Loan Term: Select the length of your loan. Shorter terms mean higher monthly payments but less total interest, while longer terms reduce monthly payments but increase total cost.
  7. Include Additional Fees: Add any documentation fees, registration costs, extended warranties, or other add-ons that will be financed with the loan.
Understanding Your Input Fields:
Vehicle Price

The negotiated purchase price of the vehicle before taxes and fees. This is your starting point for all calculations and should reflect any dealer discounts or rebates already applied.

Down Payment

Cash paid upfront that reduces your loan amount. Generally, 10-20% down is recommended for new cars and 10% for used cars to avoid being underwater on the loan.

Trade-in Value

The amount your current vehicle is worth toward the purchase. Research your car's value using KBB, Edmunds, or similar services to ensure you're getting a fair trade-in offer.

Sales Tax

Local tax rate applied to vehicle purchases. Some states tax the full purchase price, while others allow trade-in value to reduce the taxable amount.

Auto Loan Calculation Methodology:

Our calculator uses the standard auto loan amortization formula, accounting for all costs associated with vehicle financing:

Total Amount Financed = Vehicle Price + Sales Tax + Fees - Down Payment - Trade-in Value
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]
Where P = Amount Financed, r = Monthly interest rate, n = Number of payments

This comprehensive approach ensures you see the true monthly payment and total cost of your auto loan, including all taxes, fees, and financing charges.

Practical Auto Loan Examples:
New Car Purchase

$35,000 vehicle, $5,000 down
6.5% APR, 60 months

Monthly Payment: ~$587
Total Interest: ~$5,220

Used Car Purchase

$20,000 vehicle, $3,000 down
8.5% APR, 48 months

Monthly Payment: ~$420
Total Interest: ~$3,160

With Trade-in

$30,000 vehicle, $8,000 trade
5.9% APR, 60 months

Monthly Payment: ~$425
Total Interest: ~$3,500

Interpreting Your Auto Loan Results:
  • Monthly Payment: Your fixed monthly obligation. Ensure this fits comfortably in your budget, typically no more than 10-15% of your monthly income for transportation costs.
  • Total Interest: The cost of borrowing over the loan's lifetime. Compare this across different loan terms and lenders to find the most cost-effective option.
  • Amount Financed: The actual loan amount after accounting for down payment and trade-in. This determines your monthly payment and total interest costs.
  • Total Cost: The complete cost of vehicle ownership including the purchase price, financing costs, taxes, and fees.
When to Use This Auto Loan Calculator:
Before Car Shopping

Determine your budget and understand what monthly payment you can afford. This helps you focus on vehicles within your price range and avoid overspending.

Comparing Financing Options

Evaluate offers from dealers, banks, and credit unions. Compare different loan terms and interest rates to find the best financing deal.

Trade-in vs. Private Sale

Compare the convenience of trading in your current vehicle versus selling it privately for potentially more money.

Lease vs. Buy Analysis

Compare the total cost of financing a purchase versus leasing to determine which option better fits your needs and budget.

Information to Gather Before Auto Shopping:
Financial Information
  • Monthly income and budget for car payments
  • Current credit score and credit report
  • Available down payment amount
  • Current vehicle's trade-in value
  • Insurance costs for the new vehicle
Vehicle Research
  • Vehicle prices from multiple dealers
  • Financing rates from banks and credit unions
  • Vehicle reliability and resale value data
  • Insurance quotes for specific models
  • Total cost of ownership estimates
Auto Financing Tips and Best Practices:
Shop Around

Get pre-approved from multiple lenders before visiting dealers. This gives you negotiating power and ensures you get the best rate.

Maximize Down Payment

Put down at least 10-20% to reduce monthly payments, qualify for better rates, and avoid being underwater on your loan.

Choose Wisely

Balance monthly payment affordability with total cost. Shorter terms save money but increase monthly payments.

Auto Loan Tips

Get Pre-approved:

Secure financing before shopping to know your budget and negotiate from a position of strength.

Consider Total Cost:

Look beyond monthly payments to understand the true cost including interest, insurance, and maintenance.

Research Trade-in Value:

Know your current vehicle's worth using KBB, Edmunds, or similar services before negotiating.

Avoid Extended Terms:

Loans longer than 60 months often result in being underwater and paying excessive interest.