Auto Loan Calculator
Figure out your car payment, total interest, and the real cost of your auto loan. Include down payment, trade-in, sales tax, and fees.
How to use this auto loan calculator
Enter the vehicle's price, your down payment, any trade-in credit, your state's sales tax rate, and anticipated dealer fees. The calculator figures the financed amount (price minus down and trade-in, plus tax and fees), your monthly payment at the APR and term you enter, and the total interest over the life of the loan.
What the real cost of a car looks like
Most people focus on the monthly payment, which is exactly how dealers want you to think. A better number is total paid— the sum of every payment plus your down payment, trade-in, tax, and fees. On a $32,000 car financed at 7.5% for 60 months with $4,000 down, you'll typically pay more than $34,000 in payments alone, making the true cost of the vehicle around $38,000+ once you add the down payment.
Down payment strategy
A bigger down payment reduces both monthly payment and total interest, and it protects you from being underwater on the loan in year one (new cars depreciate ~20% in the first year). Aim for at least 20% down on a new car, or 10% on a used car. If you're below that, a shorter loan term (48–60 months) offsets the risk.
Loan term and APR tradeoffs
APR matters far more than people realize. On a $28,000 loan, dropping from 9% to 6% APR saves roughly $2,300 over 60 months. Shop at credit unions, your bank, and at least one online lender (LightStream, PenFed, Navy Federal) before you walk into the dealer. Walk in with a pre-approval in hand — it makes dealer financing compete on rate instead of ambushing you with add-ons at signing.
Watch the "four square" dealer tactic
Dealers often negotiate four numbers at once: price, trade-in, down payment, monthly payment. If you only watch the monthly payment, they can raise the price and stretch the term to keep that number low while squeezing thousands more out of you. Always negotiate each number separately, in this order: price first, then trade-in, then financing, then fees.
Frequently asked questions
Should I finance sales tax or pay it upfront?▾
Rolling sales tax into the loan costs you interest on the tax for the life of the loan — usually a few hundred to over a thousand dollars. Paying tax upfront saves that interest but requires more cash at signing. If you're cash-tight, financing is reasonable; if you can cover it, pay it.
Why does my trade-in reduce sales tax?▾
In most US states, sales tax applies to the vehicle price minus the trade-in value, because you're effectively only purchasing the difference. A few states (CA, VA, DC, MI) tax the full price — check your state's rules. Our calculator applies the trade-in credit by default; toggle 'tax on trade-in' if your state is an exception.
What's a fair APR on a car loan right now?▾
Rates vary wildly by credit score and lender. Roughly: excellent credit (750+) = 5–7%, good credit (670–749) = 7–10%, fair credit (580–669) = 10–15%, subprime = 15%+. Credit unions often beat dealer financing by 1–3% for the same borrower — always get a pre-approval before you shop.
Is a longer loan term worth the lower payment?▾
Rarely. Stretching a loan to 72 or 84 months lowers the monthly cost but dramatically increases total interest and the time you're 'underwater' (owing more than the car is worth). A 60-month loan is usually the sweet spot; if you can't afford it at 60 months, consider a less expensive car.
What fees should I expect at signing?▾
Typical dealer fees include documentation fees ($75–$500, varies by state), registration/title fees ($150–$500), and sometimes 'dealer preparation' charges that are negotiable. Skip fees like nitrogen tire inflation, VIN etching, or extended warranties sold by the finance manager — these are high-margin dealer add-ons.
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