Auto Loan Calculator

The sticker price on a car is almost never what you actually pay — sales tax, registration, down payment, and trade-in credit all reshape the amount you finance, and the loan term you pick can add thousands in interest. Our auto loan calculator pulls all of these levers into one view: enter the vehicle price, your down payment and trade-in value, the APR your lender quoted, your state's sales tax rate, and registration fees. We compute the true loan amount (price − down − trade + tax + fees), the monthly payment using the standard amortization formula P × r(1+r)^n / ((1+r)^n − 1), the total interest you'll pay, the total cost of the car, and the exact payoff date. A comparison table shows how stretching from 60 to 72 or 84 months lowers the monthly payment but raises lifetime interest — critical context for avoiding upside-down loans.

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Auto Loan Calculator calculator

directions_car Vehicle & Loan Details

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2026 avg: 7-8% (good credit)

Taxes & Fees
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analytics Your Loan at a Glance

Monthly Payment
$656.83
Payoff: —
Total Interest $6,634.80
Loan Amount $32,775.00
Total Cost of Car $44,409.80
Sales Tax $2,275.00
Term Comparison
Term Monthly Interest
Interpretation
Enter values to see your auto loan summary.

tips_and_updates Tips

  • • Put at least 20% down on a new car and 10% on a used car — smaller down payments often leave you upside-down (owing more than the car is worth) for years
  • • Compare 60 vs 72 vs 84-month terms in the table below — stretching the term lowers the monthly payment but can add $2,000-$5,000 in total interest
  • • A general affordability rule: total car expenses (payment, insurance, gas, maintenance) should be under 15-20% of take-home pay
  • • APR and interest rate are not the same — APR includes lender fees, so always compare APR to APR when shopping loans
  • • Get pre-approved by a credit union or bank before visiting the dealer — dealer financing is often marked up 1-3% above your best available rate
  • • Sales tax is usually calculated on price minus trade-in in most US states — double-check your state's rule since that can save hundreds
  • • Avoid rolling negative equity from your old car into the new loan — it guarantees you start the new loan upside-down
  • • Gap insurance is worth considering if your down payment is under 20% — it covers the difference between the loan balance and the car's value if it's totaled

How to Use the Auto Loan Calculator

1

Enter the vehicle price

Use the negotiated out-the-door price, not the sticker price.

2

Add your down payment and trade-in

These reduce the amount you need to finance.

3

Enter the APR and choose a loan term

Compare 36, 48, 60, 72, and 84 months in the side-by-side table.

4

Set sales tax and fees

Default is 6.5% tax and $500 in fees — adjust to your state.

5

Review monthly payment and total interest

See your monthly payment, total interest, total cost, and payoff date instantly.

The Formula

First compute the loan amount: add sales tax and fees to the price, then subtract the down payment and trade-in value. Second, apply the standard amortization formula using the monthly interest rate (APR divided by 12 and 100) and the total number of monthly payments. Total interest equals Monthly × n − P, and total cost equals Price + Total Interest + Tax + Fees.

Loan = Price − Down − Trade + (Price × Tax%) + Fees | Monthly = P × r(1+r)^n / ((1+r)^n − 1) where r = APR / 12 / 100, n = months

lightbulb Variables Explained

  • Price Vehicle purchase price (sticker or negotiated)
  • Down Down payment (cash paid up front)
  • Trade Trade-in value credited toward the new car
  • Tax% State and local sales tax rate applied to the vehicle price
  • Fees Registration, title, and dealer documentation fees
  • P Principal loan amount after down payment, trade, tax, and fees
  • r Monthly interest rate = APR / 12 / 100
  • n Number of monthly payments (loan term in months)
  • Monthly Fixed monthly payment that amortizes the loan over n months

tips_and_updates Pro Tips

1

Put at least 20% down on a new car and 10% on a used car — smaller down payments often leave you upside-down (owing more than the car is worth) for years

2

Compare 60 vs 72 vs 84-month terms in the table below — stretching the term lowers the monthly payment but can add $2,000-$5,000 in total interest

3

A general affordability rule: total car expenses (payment, insurance, gas, maintenance) should be under 15-20% of take-home pay

4

APR and interest rate are not the same — APR includes lender fees, so always compare APR to APR when shopping loans

5

Get pre-approved by a credit union or bank before visiting the dealer — dealer financing is often marked up 1-3% above your best available rate

6

Sales tax is usually calculated on price minus trade-in in most US states — double-check your state's rule since that can save hundreds

7

Avoid rolling negative equity from your old car into the new loan — it guarantees you start the new loan upside-down

8

Gap insurance is worth considering if your down payment is under 20% — it covers the difference between the loan balance and the car's value if it's totaled

An auto loan is the second-largest debt most Americans carry, with the average new car loan reaching $40,290 at 6.84% interest over 68 months as of 2026 — resulting in $8,900 in interest charges and a total repayment of $49,190. Understanding how loan terms, interest rates, and down payments affect your monthly payment and total cost is critical for making a financially sound vehicle purchase. Extending a loan from 48 to 72 months reduces the monthly payment by approximately 30% but increases total interest by 50-80%, and creates the risk of being underwater (owing more than the car is worth) for much of the loan term. Our auto loan calculator computes your monthly payment, total interest, and total cost for any combination of loan amount, interest rate, and term. It also shows the amortization schedule revealing how each payment splits between principal and interest, calculates the impact of different down payment amounts, and compares scenarios side by side so you can find the loan structure that balances affordable payments with reasonable total cost.

How 60 vs 72 vs 84-month auto loans really compare

Stretching an auto loan from 60 to 72 months typically drops the monthly payment by $80-$120 on a $30,000 loan but adds roughly $1,300-$2,000 in total interest. Going from 60 to 84 months saves about $150/month but adds closer to $3,500-$4,500 in interest — and leaves you upside-down for 4+ years because the car depreciates faster than the principal pays down. If affordability is tight, always try to increase the down payment before extending the term. The comparison table in our auto loan calculator lets you see the exact trade-off for your numbers.

Why APR matters more than the sticker rate

Dealers often advertise an attractive interest rate that excludes origination and documentation fees. The APR is the only number that includes these costs, and federal Truth-in-Lending rules require it to be disclosed. A 6.9% loan with $800 in fees on a $30,000 balance may carry a 7.5% APR — that half-point difference is worth about $500 over five years. Always shop pre-approvals from a credit union or bank so you walk into the dealer with a competing APR to beat.

Frequently Asked Questions

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All formulas verified against official standards.

Consumer Financial Protection Bureau - Auto Loans open_in_new Federal Reserve - Consumer Credit open_in_new