Auto Loan Calculator

How to Calculate

• 1Enter the vehicle price - the total cost of the car you want to purchase
• 2Enter your down payment amount - the cash you pay upfront (can be $0)
• 3Enter your trade-in value - the value of your current vehicle if trading it in (can be $0)
• 4Enter the sales tax rate - your state or local sales tax percentage (typically 0-10%)
• 5Enter the annual interest rate (APR) - the interest rate offered by your lender
• 6Enter the loan term in years - how long you have to repay (typically 3-7 years for auto loans, must be 1-10 years)
• 7Enter any fees - registration fees, dealer fees, and other one-time costs
• 8Click "Calculate" to see your monthly payment and total costs
• 9Review the loan amount - this is what you actually need to finance after down payment, trade-in, taxes, and fees
• 10Understand that APR matters more than price - a lower APR can save thousands in interest even on a more expensive vehicle

Calculation Examples

A $30,000 vehicle with $5,000 down payment at 6% APR for 5 years requires a monthly payment of $533.31. After sales tax and fees, the total vehicle cost is $32,600. You finance $27,600 and pay $4,398.60 in interest over 5 years, for a total cost of $32,998.60 (including down payment).

A $40,000 vehicle with a $10,000 trade-in and no down payment at 5% APR for 6 years requires a monthly payment of $511.23. The trade-in reduces your taxable amount and loan amount, resulting in lower monthly payments. You finance $31,800 and pay $5,008.56 in interest over 6 years.

A $20,000 vehicle with $4,000 down payment at 4% APR for 3 years requires a monthly payment of $531.43. While the monthly payment is higher than a longer-term loan, the total interest paid is only $1,131.48 (6.3% of the loan amount). Shorter loan terms result in higher payments but significantly lower total interest costs.