Money
Auto Loan Calculator
Last updated: May 31, 2026
Written by Blake Boege
An auto loan calculator is a financial tool that computes the monthly installment required to pay back a vehicle loan. It takes the purchase price, subtracts down payments and trade-in value, adds sales tax, and uses the standard amortization formula over the loan term and interest rate to determine the payment.
Calculate your monthly payments, total interest, and full amortization schedule for an auto loan. Enter the vehicle price, down payment, trade-in value, sales tax, APR, and term to see a complete cost breakdown.
Quick Answer
Calculate your monthly auto loan payment, total interest, and payoff schedule. Enter the vehicle price, down payment, trade-in, interest rate, and loan term to see the amortization table.
Sticker or negotiated price before tax. · e.g. 30,000
Cash you put toward the purchase up front. · e.g. 3,000
Credit your dealer gives for your old vehicle. · e.g. 0
Combined state and local rate. · e.g. 6
Number of monthly payments. · e.g. 60
Annual percentage rate on the loan. · e.g. 7
Title, registration, doc fees rolled into the loan. · e.g. 0
Estimated monthly payment
$570.27
Over 60 months at 7% APR
Examples
$30,000 car, $3,000 down, 60 mo at 7% APR
≈ $570.27/mo · $5,416 interest
Same loan at 0% APR
= $480.00/mo · $0 interest
$25,000 car, $5,000 trade, 72 mo at 6% APR
≈ $351.35/mo · $4,097 interest
How it works
The auto loan calculator uses the standard amortized loan payment formula. The loan principal is the vehicle price minus your down payment and trade-in, plus the sales tax on the taxable portion and any rolled-in fees.
Monthly auto loan payment
M = P × r × (1 + r)^n / ((1 + r)^n − 1)
The parts
- M = monthly payment
- P = amount financed (price − down − trade + tax + fees)
- r = monthly interest rate (APR ÷ 12 ÷ 100)
- n = number of monthly payments
At 0% APR
M = P / n
What is an auto loan?
An auto loan is a fixed monthly payment you make to a lender for purchasing a car. Each payment covers a portion of interest and a portion of principal. Early payments are mostly interest, later payments are mostly principal. The size of the payment depends on the amount financed, the APR, and the loan term.
How the auto loan calculator works
Enter the vehicle price, your down payment, the trade-in value, the sales tax rate, the loan term in months, the APR, and any fees you want rolled into the loan. The calculator computes:
- Sales tax on the vehicle price minus the trade-in value
- Loan amount before tax (price minus down payment and trade-in)
- Amount financed (loan amount before tax + sales tax + fees)
- Estimated monthly payment using the amortization formula
- Total interest paid over the loan term
- Total of payments and total cost including the down payment
Worked example
Vehicle price $30,000, down payment $3,000, trade-in $0, sales tax 6%, loan term 60 months, APR 7%, fees $0.
- Sales tax = 30,000 × 0.06 = $1,800
- Loan amount before tax = 30,000 − 3,000 − 0 = $27,000
- Amount financed = 27,000 + 1,800 = $28,800
- Monthly payment ≈ $570.27
- Total of payments ≈ $34,216
- Total interest ≈ $5,416
- Total cost incl. down payment ≈ $37,216
What affects your monthly auto loan payment?
Four inputs move the monthly payment most: the amount you finance, the APR, the loan term, and how much sales tax and fees you roll into the loan. Small changes in any of these can add up to hundreds or thousands of dollars over the life of the loan.
Down payment and trade-in value
A down payment is cash you put in up front. A trade-in is credit for your old vehicle. Both reduce the amount financed and therefore the monthly payment. In many U.S. states, the trade-in value is subtracted from the taxable price too, so a trade-in can also lower the sales tax you pay.
APR and loan term
APR is the annualized cost of borrowing. The loan term is how many months you pay. A longer term spreads the loan over more payments, which lowers the monthly payment but raises the total interest. A lower APR cuts both the monthly payment and total interest. If you can refinance to a lower APR later, that often saves more than stretching the term.
For help thinking in percentages, the percentage increase calculator can compare two APR scenarios side by side.
Related auto loan tools
For more specific calculations or comparisons, try these related financial tools:
Disclaimer. This calculator is an estimate for general educational use. Actual loan terms, taxes, fees, and rates can vary by lender, dealer, state, credit profile, and purchase details. The calculator is not a loan offer or approval and is not financial advice.
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Frequently asked questions
An auto loan payment is calculated using the standard amortized loan formula: monthly payment = P × r × (1 + r)^n / ((1 + r)^n − 1). P is the amount financed (vehicle price minus down payment and trade-in, plus sales tax and any rolled-in fees), r is the monthly interest rate (APR divided by 12 and then by 100), and n is the number of monthly payments. If APR is 0%, the payment simplifies to P / n.
Four elements impact the payment most: the vehicle price, the amount you put down or trade in, the annual percentage rate (APR), and the loan term. A higher purchase price or APR increases the payment. A larger down payment, a larger trade-in credit, or a lower APR reduces it. A longer term lowers the monthly payment but raises total interest paid over the life of the loan.
Yes. A down payment reduces the amount financed, which directly reduces both the monthly payment and the total interest paid. It also lowers the risk of being upside down on the loan (owing more than the car is worth) if the vehicle depreciates quickly.
Yes, a trade-in reduces the amount financed. In many U.S. states, the trade-in value is also subtracted before sales tax is calculated, which lowers the tax bill on the new car. The calculator applies sales tax to the vehicle price minus the trade-in value.
APR is the annualized cost of the loan, expressed as a percentage. A higher APR raises the monthly payment and the total interest paid. Even a one percentage point change in APR can move the monthly payment by several dollars on a typical auto loan, adding up to hundreds of dollars in total interest over the term.
A longer term gives you a lower monthly payment, but you pay more total interest because the balance is outstanding longer. A 72 or 84-month loan can also leave you owing more than the car is worth for much of the term. Choose the shortest term you can comfortably afford.
It usually does. If you finance the sales tax with the loan, the tax is added to the amount financed and you pay interest on it. The calculator follows this common case: sales tax is computed on the vehicle price minus any trade-in, then added to the amount financed.
Amount financed is the loan principal: vehicle price minus down payment and trade-in, plus sales tax and any rolled-in fees. Total cost includes the down payment plus every monthly payment over the life of the loan, covering both what you borrowed and the interest you paid on it.
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