Auto Loan Calculator

How to Use This Auto Loan Calculator

This calculator shows your real monthly car payment — not just the sticker price divided by months, but the actual amount that includes sales tax, dealer fees, and your trade-in. Enter your numbers and results update instantly.

1. Enter the vehicle price

Use the out-the-door price, the sticker price, or the amount you're negotiating. The U.S. median new car price in 2026 is approximately $48,000, but our default of $35,000 reflects a common purchase point for new compact and midsize vehicles. The calculator works for any amount — new or used.

2. Set your down payment and trade-in

Both reduce how much you finance. A down payment is cash you put in upfront. A trade-in is money the dealer credits against your purchase. They're financially equivalent — but they differ for sales tax purposes. In most states, tax is calculated on the vehicle price minus the trade-in value, making a trade-in slightly more tax-efficient than cash in some situations.

3. Choose your loan term

Auto loans typically run 24 to 84 months. The sweet spot for most buyers is 48–60 months — short enough to avoid being seriously underwater, long enough to keep payments manageable. A 60-month loan at 7.5% on $32,000 costs about $640/month. The same loan at 84 months drops to $490/month but costs $1,700 more in total interest and keeps you in debt 2 years longer.

4. Add sales tax and fees

Click Show advanced options to include sales tax and dealer fees in your financed amount. These are real costs most calculators ignore. On a $35,000 car with 6% sales tax and $500 in fees, you're actually financing about $32,600 — nearly $2,600 more than the price minus your down payment alone. The default 6% reflects the national median; actual rates range from 0% (Montana, Oregon, and a few others) to over 10% in some cities.

How Auto Loan Payments Are Calculated

Auto loans use the same standard amortization formula as any fixed-rate loan. Your payment is the same each month — what changes is the split between interest and principal reduction.

The key for auto loans is that P (principal) includes more than just the car price. The actual loan amount is:

• (Vehicle price − down payment − trade-in) = base financed amount
• + Sales tax on (vehicle price − trade-in)
• + Dealer and government fees
• = Total amount financed (P in the formula)

A worked example

For a $35,000 car, $5,000 down, no trade-in, 60 months at 7.5%, with 6% sales tax and $500 fees:

• Sales tax: $35,000 × 6% = $2,100
• Loan amount: $30,000 + $2,100 + $500 = $32,600
• Monthly rate: 7.5% ÷ 12 = 0.625%
• Monthly payment: ~$652/month
• Total interest: approximately $6,520 over 5 years

Understanding Your Results

Monthly Payment

This is the fixed amount due every month. Your lender will report this payment to credit bureaus — consistent on-time payments improve your credit score over the life of the loan. Budget for this plus insurance (typically $100–$250/month), fuel, and maintenance (roughly $100/month for a new car) to get your true monthly transportation cost.

Total Loan Amount

This is what you're actually financing — after down payment and trade-in credit, plus tax and fees. This number often surprises buyers who assume they're financing just the negotiated price. A $35,000 car with 6% tax and $500 in fees means you're financing $32,600, not $30,000. Knowing this upfront is essential for accurate payment planning.

Total Interest and Total Paid

Total interest is the true cost of financing. On $32,600 at 7.5% for 5 years, you pay about $6,520 in interest — effectively paying $39,120 for a $35,000 car. The same loan at 84 months reduces the monthly payment by $160 but increases total interest to $8,200. The amortization schedule below shows exactly how each payment is allocated month by month.