Free online tool

Auto Loan Calculator

Work out the real monthly cost of a car — not just the sticker price. Fold in your down payment, trade-in and sales tax to see your true payment, the amount financed, and how much interest the loan really costs.

Monthly car payment Sales tax & trade-in Total interest
The deal
$
$
$
%
%
60 months (5 yr)
Monthly payment
$0.00
Amount financed
$0
Total interest
$0
Total cost of car
$0
The out-the-door breakdown
Vehicle price$0
+ Sales tax$0
− Down & trade-in$0
Amount financed$0
Interest over the term$0

Estimates are for illustration and education only — not a loan offer or financial advice. Actual tax rules, fees and APR vary by state and lender.

Cheat sheet

Monthly payment per $10,000 financed

The payment on $10,000 of auto financing by rate and term — multiply by your amount financed in ten-thousands.

APR 36 mo 48 mo 60 mo 72 mo
4% $295 $226 $184 $156
6% $304 $235 $193 $166
7.5% $311 $242 $200 $173
10% $323 $254 $212 $185
14% $342 $273 $233 $207

Figures are the fixed monthly payment on $10,000 of financing, rounded. Longer terms lower the payment but raise total interest — and the risk of owing more than the car is worth.

Good to understand

What actually drives your car payment

The sticker price is only the starting point. Your real monthly payment depends on how much you finance — the price plus sales tax, minus your down payment and trade-in — spread across the term at your APR. This calculator assembles all of those pieces so the number you see is the number you'll actually pay.

Down payment and trade-in do double duty

Both reduce the amount you finance, which lowers every monthly payment and the total interest. In most states a trade-in also lowers the taxable amount, shrinking your sales tax too — so it often helps more than an equivalent cash down payment.

The long-term temptation

Stretching to a 72- or 84-month loan makes the monthly payment look affordable, but it's a trap: you pay far more interest, and because cars depreciate fast, you can spend years underwater — owing more than the car is worth. A term of 48–60 months is a safer balance for most buyers.

Rate depends on credit and the car

Auto rates hinge on your credit score and whether the car is new or used — used loans usually cost more. Get pre-approved by a bank or credit union before visiting the dealer; it gives you a rate to beat and real negotiating power.

Don't forget the running costs

The loan is only part of ownership: insurance, fuel, maintenance, and registration add up. Budget for the whole picture, and once the car is paid off, redirect that payment into our compound interest calculator to turn a former expense into savings.

The math

How your car payment is calculated

A car loan is a fixed amortising loan. The amount you finance — price plus tax, minus your down payment and trade-in — is spread across the term at your APR using the standard payment formula.

Amount financed = Price + Tax − Down − Trade-in
In most states, sales tax is charged on the price after the trade-in is deducted — which is why a trade-in can save more than the same amount in cash.
PMT = P · i(1 + i)n ⁄ (1 + i)n − 1
P = amount financed  •  i = monthly rate (APR ÷ 12)  •  n = number of monthly payments
Worked example. A $35,000 car with 7% sales tax, a $5,000 down payment and no trade-in means about $2,450 tax and $32,450 financed. At 7.5% APR over 60 months that's roughly $650/month, and about $6,500 in total interest. Stretch to 72 months and the payment drops near $560 — but total interest climbs by over $1,500.
Get it right

What raises and lowers your payment

Four numbers decide your monthly cost. Knowing which way each pushes helps you negotiate the deal that actually fits your budget.

Lowers your cost helps

  • A bigger down payment or trade-in — less to finance
  • A lower APR from strong credit or pre-approval
  • A shorter term — less interest overall
  • Buying used or a less expensive model

Raises your cost hurts

  • Long 72–84 month terms that balloon total interest
  • Rolling negative equity from an old loan into the new one
  • Dealer add-ons financed at the loan's APR
  • A weak credit score pushing your rate up

Beware the underwater trap. Cars depreciate fastest in their first years. On a long loan you can owe more than the car is worth for a long stretch — a problem if it's totaled or you need to sell. A larger down payment and a term of 48–60 months keep you right-side-up sooner.

Get pre-approved first. A rate from your own bank or credit union is a benchmark the dealer has to beat. It turns "what monthly payment do you want?" back into a conversation about price and APR — where the real money is.

Quick answers

Auto loan calculator FAQ

Is this auto loan calculator free?
Yes — it's free, runs entirely in your browser, and your numbers never leave your device.
Does it include sales tax?
Yes. Enter your local rate and it applies the tax to the price minus your trade-in — the way most states calculate it — then folds the tax into the amount financed.
How much should I put down?
A common guideline is 20% on a new car and 10% on a used one. A larger down payment lowers your payment and interest and reduces the risk of being underwater early in the loan.
What loan term should I choose?
Shorter is cheaper overall. 48–60 months balances an affordable payment against total interest for most buyers. Terms of 72–84 months lower the payment but cost much more and keep you underwater longer.
Should I finance through the dealer or a bank?
Compare both. Getting pre-approved by a bank or credit union first gives you a benchmark rate and leverage. Dealers sometimes beat it with promotions, but only a side-by-side APR comparison tells you for sure.
Is this financial advice?
No — it's an educational estimate. Tax rules, dealer fees, and rates vary by state and lender. Review your loan agreement and consult a qualified advisor before buying.