Auto Loan Calculator
Car loan monthly payment
This free Auto Loan Calculator works out the true monthly payment on a car, including the parts dealers sometimes mention only at the end. Start with the vehicle price, then add your down payment, the value of any trade-in, and your local sales tax rate; the calculator applies tax to the price after the trade-in is subtracted, which is how many regions charge it, and finances only the amount that is actually left. You then see the amount financed, the monthly payment, the total interest over the loan, and the full out-the-door cost of the car once every payment is made.
That total cost figure is the one worth comparing between offers. A longer loan always lowers the monthly payment, which is exactly why it is offered so cheerfully, but stretching a loan from forty eight to seventy two months can add a great deal of interest and leave you owing more than the car is worth for much of its life. Trying the same car at two or three different terms in this tool shows the trade-off in hard numbers instead of sales talk. Dealer fees and registration are not included, so add a little headroom for those. Everything is calculated in your browser and nothing is stored.
How to use
- Enter the vehicle's sticker or negotiated price.
- Add your down payment and any trade-in value.
- Enter your sales tax rate as a percentage.
- Type the loan interest rate and term in months.
- Click Calculate payment to see the monthly and total costs.
Frequently asked questions
Why is tax calculated after the trade-in?
In many states and regions, sales tax on a vehicle is charged only on the difference between the new car's price and your trade-in's value, which can save you real money. Rules vary by location, so if your area taxes the full price, set the trade-in to zero in the tax sense by testing both ways and comparing.
What loan term is sensible for a car?
Thirty six to sixty months is the usual comfortable range. Beyond that, interest piles up and cars depreciate faster than the balance falls, which can leave you upside down — owing more than the car would sell for — if you need to change vehicles early.
Does a bigger down payment help much?
Yes, in three ways: the amount financed drops, so the monthly payment drops; total interest drops because you borrow less; and you start with equity instead of owing more than the car is worth after its first-year depreciation.
What is not included in this estimate?
Title, registration and dealer documentation fees, plus running costs such as insurance, fuel and maintenance. Finance charges from add-ons rolled into the loan, like extended warranties, would also raise the real figures.