Auto Loan Calculator
Calculate your monthly car payment, total interest and total cost from the price, down payment, trade-in, sales tax, rate and term. Example: a $35,000 car with $5,000 down, 6% sales tax and a 7% rate over 60 months costs about $635.62 a month.
Show steps
How to use the Auto Loan Calculator
- Enter the vehicle price, down payment and trade-in value.
- Add your sales tax rate, interest rate and loan term.
- Press Calculate for the monthly payment, total interest and a term comparison.
Formula and method
Amount financed = price + sales tax – down payment – trade-in. Monthly payment = L x i / (1 – (1 + i)^-n), where i is the monthly rate (APR / 12) and n is the number of months.
Worked example: $35,000 car, $5,000 down, 7% APR
| Term | Monthly payment | Total interest |
|---|---|---|
| 36 months | $991.15 | $3,581.57 |
| 48 months | $768.67 | $4,796.37 |
| 60 months | $635.62 | $6,037.11 |
| 72 months | $547.27 | $7,303.66 |
| 84 months | $484.48 | $8,595.90 |
Shorter versus longer loans
A longer term lowers the monthly payment but raises the total interest, and can leave you owing more than the car is worth. A 20% down payment and a term of 60 months or less is a common guideline.
Before you sign
Compare the APR from a credit union, your bank and the dealer. Check for prepayment penalties and ask for the out-the-door price including taxes and fees.
Frequently asked questions
How do I calculate a car payment?
Subtract the down payment and trade-in from the price plus sales tax, then apply the loan payment formula with your monthly rate and term.
How much should I put down on a car?
Many advisers suggest 10% to 20% to avoid owing more than the car is worth.
Is a 72 or 84 month loan a good idea?
It lowers the payment but increases interest and the risk of negative equity.
Is sales tax financed?
Often yes. This calculator adds it to the loan.
What is a good APR for a car loan?
It depends on credit score and whether the car is new or used. Compare several offers.
Does trade-in lower sales tax?
In many states, yes. Rules vary by state.
Sources
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