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Auto Loan Calculator

Estimate your monthly car payment from the price, down payment, trade-in, sales tax and fees, and see the total interest and true cost of the vehicle.

Auto Loan Calculator: with the default inputs, monthly payment is $652.45.

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Try an example
Monthly payment
$652.45
Total loan amount
$32,950
Total interest
$6,197
Total cost of the car
$44,147
Sales tax
$2,450
Cash due at signing
$5,000
Assumptions
  • Simple-interest amortizing loan; payments at the end of each month; APR ÷ 12 per month.
  • Trade-in value is net of any loan still owed on the old vehicle.
  • Sales tax is applied to the negotiated price (or price minus trade-in), not to fees.
What you pay for over the loan
  • Vehicle price$35,00079%
  • Sales tax$2,4506%
  • Fees$5001%
  • Interest$6,19714%
Principal vs interest by year
$0$2k$4k$6k12345Year
PrincipalInterest
Loan balance
$0$10k$20k12345Year
Balance
Amortization schedule (yearly)
YearPrincipalInterestTotal paidBalance
1$5,704$2,126$7,829$27,246
2$6,116$1,714$7,829$21,131
3$6,558$1,271$7,829$14,573
4$7,032$797$7,829$7,540
5$7,540$289$7,829$0
Amortization schedule (monthly)
MonthPaymentPrincipalInterestBalance
1$652.45$460.24$192.21$32,489.76
2$652.45$462.93$189.52$32,026.83
3$652.45$465.63$186.82$31,561.21
4$652.45$468.34$184.11$31,092.86
5$652.45$471.07$181.38$30,621.79
6$652.45$473.82$178.63$30,147.97
7$652.45$476.59$175.86$29,671.38
8$652.45$479.37$173.08$29,192.01
9$652.45$482.16$170.29$28,709.85
10$652.45$484.98$167.47$28,224.88
11$652.45$487.80$164.65$27,737.07
12$652.45$490.65$161.80$27,246.42
112 of 60
Math verified by automated testsUpdated 2026-09-082 sources cited

How this is worked out

The formula

Loan = price − down payment − trade-in (+ sales tax + fees if financed)
M = Loan × r(1 + r)^n ÷ ((1 + r)^n − 1)

r = APR ÷ 12, n = term in months

Open How it’s calculated above to see this worked through with your own numbers.

What you enter

Vehicle price
Negotiated price before tax and fees.in dollars · 0 or more · defaults to 35000
Down payment
A number.in dollars · 0 or more · defaults to 5000
Trade-in value
What the dealer credits you for your current car (net of anything still owed on it).in dollars · 0 or more · defaults to 0
Interest rate
APR quoted by the lender.a percentage · from 0 to 40 · defaults to 7
Loan term
A number.from 1 to 120 · whole numbers only · defaults to 60
Sales tax
State plus local rate where the car is registered.a percentage · from 0 to 20 · defaults to 7
Sales tax applies to
Most states tax only the difference after a trade-in; a handful tax the full price.Price minus trade-in (most states) · Full price (e.g. CA, VA, MI over cap, HI)
Title, registration & dealer fees
A number.in dollars · 0 or more · defaults to 500
Roll tax & fees into the loan
Off = you pay tax and fees in cash at signing.defaults to on

What you get back

Monthly paymentmain answer
Total loan amount
What you actually finance.
Total interest
Total cost of the car
Price + tax + fees + interest (before trade-in credit).
Sales tax
Cash due at signing

What this assumes

  • Simple-interest amortizing loan; payments at the end of each month; APR ÷ 12 per month.
  • Trade-in value is net of any loan still owed on the old vehicle.
  • Sales tax is applied to the negotiated price (or price minus trade-in), not to fees.

About this calculator

The monthly number a dealer quotes is easy to move around — stretch the term, roll in the fees, tweak the rate — so it pays to build the payment yourself from the pieces. This calculator starts with the negotiated price, subtracts your down payment and trade-in, adds sales tax and fees if you're financing them, and amortizes the result at the quoted APR. You get the payment, the total interest, and the real cost of the car once financing is included.

How to use it

Enter the price you've agreed on (not MSRP), your cash down, and the trade-in credit. Set the APR from your pre-approval or the dealer's offer and the term in months. Under Tax & fees, put in your local sales tax rate and the title, registration and documentation fees. Two choices matter more than they look:

  • Sales tax applies to — most states tax only the price after the trade-in credit, which makes trading in worth more than the raw number. California, Virginia, Hawaii and a few others tax the full price; Michigan caps the credit. Check your state's DMV page if you're unsure.
  • Roll tax & fees into the loan — convenient, but you pay interest on them for the whole term.

Use Solve for to turn the question around: "what price keeps me at $450 a month?"

Reading the results

  • Monthly payment is principal and interest only. Insurance and registration renewals come on top.
  • Total loan amount is what you're actually borrowing — often noticeably more than "price minus down".
  • Total cost of the car adds interest to price, tax and fees. Compare it to the sticker: on a 72-month loan at 9%, interest alone adds about 30% to the amount financed.
  • Cash due at signing is your down payment plus any tax and fees you chose not to finance.

Term length and being upside-down

Longer terms cut the payment but raise the rate and the interest, and cars depreciate faster than a long loan amortizes. With little down and tax rolled in, you can owe more than the car is worth for the first two or three years. A common guideline: keep the term at or under 60 months and total transportation costs under 15–20% of take-home pay.

Before you sign

Get a pre-approval from a bank or credit union first so the dealer has a rate to beat, and ask for the out-the-door price in writing. Make sure add-ons like GAP insurance or extended warranties aren't quietly capitalized into the loan.

Frequently asked questions

Is sales tax charged on the full price or after the trade-in?

It depends on the state. Most give a trade-in credit and tax only the difference; California, Virginia, Hawaii, Kentucky and a few others tax the full price, and Michigan caps the credit. Pick the option that matches your state.

Should I finance the sales tax and fees?

Only if you have to. Rolling them in means paying interest on them for the entire term and starting the loan owing more than the car is worth. Paying them in cash keeps the loan smaller.

What's a good car loan term?

60 months or less. Rates rise with term, and 72- and 84-month loans keep you underwater for years. If the payment only works at 84 months, the car is probably too expensive.

How much car can I afford?

A common guideline is total car costs (payment, insurance, fuel, maintenance) under 15–20% of take-home pay, with a 20% down payment and a term of four years or less for the loan itself. Use Solve for → Vehicle price with your target payment.

Does a bigger down payment lower the interest rate?

Sometimes — lenders price risk on loan-to-value, so 20% down can get you a better tier. It always lowers the interest you pay, because you borrow less.

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