Auto Loan Calculator
Calculate your monthly car payment, total interest, and total cost from a vehicle price, down payment, trade-in, sales tax, rate, and loan term.
How to use the auto loan calculator
- 1
Enter the vehicle price, down payment, and trade-in value.
- 2
Add your local sales tax percentage, if any, and your quoted interest rate (APR).
- 3
Pick a loan term (36, 48, 60, or 72 months, or a custom term).
- 4
Your monthly payment, total interest, and total cost update instantly as you type.
How your car payment is calculated
Step 1 — find the amount financed: vehicle price − down payment − trade-in value + sales tax (calculated on price minus trade-in, in most states).
Step 2 — apply the standard loan payment formula: M = P × [r(1+r)^n] ÷ [(1+r)^n − 1], where P is the amount financed, r is your monthly rate (APR ÷ 12), and n is the loan term in months.
Worked example: a $35,000 vehicle with a $3,000 down payment and a $5,000 trade-in, 7% sales tax, at 6.9% APR over 60 months. Taxable amount = $35,000 − $5,000 = $30,000, so sales tax = $2,100. Amount financed = $35,000 − $3,000 − $5,000 + $2,100 = $29,100. Plugging into the payment formula gives a monthly payment of $574.84, totaling $34,490.58 over 60 months — of which $5,390.58 is interest.
How loan term changes your total cost
| Term (on $24,000 at 5.5%) | Monthly payment | Total interest paid |
|---|---|---|
| 36 months | $724.70 | $2,089.26 |
| 48 months | $558.16 | $2,791.46 |
| 60 months | $458.43 | $3,505.67 |
| 72 months | $392.11 | $4,231.87 |
Stretching the same $24,000 loan from 36 to 72 months cuts the monthly payment by nearly half, but almost doubles (about 2x) the total interest paid — and keeps you financing a depreciating asset for twice as long.
Tips for getting a better car loan
Get pre-approved before you shop. A pre-approval from your bank or credit union gives you a real interest rate to compare against dealer financing, and often improves your negotiating position on the vehicle price itself.
Compare the shortest term you can comfortably afford. As the table above shows, a shorter term dramatically reduces total interest, even though the monthly payment is higher — run a few terms through the calculator to find the payment that fits your budget without stretching unnecessarily long.
Know your trade-in's value before you negotiate. Checking an independent valuation before visiting a dealer helps you evaluate whether a trade-in offer is fair, separately from any discount on the new vehicle's price.
Watch the total cost, not just the monthly payment. Dealers sometimes extend the loan term to hit a target monthly payment — always check the total interest and total cost figures here, not just whether the monthly number "feels" affordable.
Shopping for a home loan instead of a car loan? Try the Mortgage & Loan Calculator →
Frequently asked questions
Related guides
The exact formula behind a car payment, how trade-ins and sales tax factor in, and a full worked example from vehicle price to monthly payment.
Read the guide →A side-by-side comparison of 36, 48, 60, and 72 month auto loan terms on the same loan amount, and why a longer term costs much more in total interest.
Read the guide →Rules of thumb for setting a car budget, how down payment and trade-in change what you can afford, and a worked comparison of a new vs. used car payment.
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