Principal
Price − incentives − down payment − trade-in + amount owed on trade-in (± tax/fees if you roll them into the loan).
Car financing
Auto Loan Calculator
Estimate monthly payments, sales tax, trade-in equity, and total loan cost for a U.S. vehicle purchase.
Vehicle & Loan Details
Enter price, term, rate, and tax inputs. Results update as you type.
Auto Price
$
Loan Term (months)
Interest Rate
%
Cash Incentives
$
Down Payment
$
Trade-in Value
$
Amount Owed on Trade-in
$
Sales Tax
%
Title, Registration & Fees
$
How Auto Loan Payments Are Calculated
Loan amount starts from vehicle price, then subtracts incentives, down payment, and net trade-in equity. Sales tax and fees can be financed or paid upfront — the same structure used by most U.S. auto loan worksheets.
Monthly Payment
Standard amortization: P × r(1+r)n / ((1+r)n−1), where r is the monthly interest rate and n is the term in months.
Sales Tax
Taxable base is usually price minus trade-in. Whether cash rebates are taxed depends on the state — toggle that option to match your location.
Fees & Upfront
Title, registration, and dealer fees can be paid at signing or financed. Upfront cash typically includes down payment plus any costs not rolled into the loan.
Auto Loan Calculator Features
Model a realistic car purchase before you visit a dealer or lock in financing.
Payment & Interest
See monthly payment, total interest, and total of all loan payments for any term and APR.
Trade-in Equity
Factor in trade-in value and any remaining balance so negative equity does not surprise you at signing.
Tax & Fee Scenarios
Compare financing taxes and fees versus paying them upfront to understand cash due at delivery.
First-Year Schedule
Review how interest and principal split month by month so early payments make more sense.
Planning Tips for Car Buyers
A lower payment is not always the best deal — total cost and loan length matter just as much.
Shop the rate, not only the payment
Dealers often stretch terms to 72–84 months to lower the monthly bill while increasing total interest. Compare APRs from banks, credit unions, and captive lenders before you negotiate.
Cash back vs. low APR
Manufacturer rebates reduce the financed amount immediately; special low rates reduce interest over time. Run both scenarios in this calculator to see which saves more for your down payment and term.
Watch for underwater loans
Cars depreciate quickly. A large loan with little down payment can leave you owing more than the vehicle is worth — especially if you roll negative equity from a previous trade-in.
Budget beyond the payment
Insurance, maintenance, fuel, and registration add to ownership cost. Keep total transportation spend comfortable relative to your monthly income.
Why Use Our Auto Loan Calculator?
- Uses the same amortization math lenders rely on for fixed-rate auto loans
- Handles incentives, trade-ins, sales tax, and fees in one worksheet
- Instant updates as you change price, term, or APR — no signup required
- Clear principal vs. interest breakdown plus first-year schedule preview
Frequently Asked Questions
How is an auto loan monthly payment calculated?
The calculator uses the standard amortizing loan formula with your financed principal, annual percentage rate (converted to a monthly rate), and loan term in months. Each payment covers interest first, then reduces principal.
Should I include sales tax and fees in the loan?
Including them lowers cash due at signing but increases the loan amount and interest paid. Paying tax and fees upfront usually costs less overall if you can afford the larger down payment.
How does a trade-in affect my loan?
Trade-in value reduces what you finance. If you still owe money on the trade-in, that balance is added to the new loan. Positive equity lowers the loan; negative equity raises it.
What loan term should I choose?
Shorter terms (36–48 months) usually mean higher payments but less interest. Longer terms (60–84 months) lower the payment but increase total cost and the chance of being underwater. Match the term to how long you plan to keep the car.
Do all states tax manufacturer rebates?
No. Some states tax the full pre-rebate price; others tax the price after incentives. Use the “sales tax applies to cash incentives” checkbox to match your state’s rule.
Is this the same as a lease payment calculator?
No. Leases use residual value, money factor, and depreciation. This tool is for purchase loans where you own the vehicle after payoff.
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Disclaimer
Educational estimates only. Dealer fees, insurance requirements, early payoff penalties, and local tax rules may differ. Confirm figures with your lender or dealer before signing a contract.