Auto Loan Calculator

Example Calculation

A $35,000 car with $5,000 down and 6% sales tax means you finance $32,100. At a 7% APR over 60 months, the payment is about $635.62 and the interest totals $6,037.

Stretch the same loan to 84 months and the payment falls to $484.48, but the interest rises to $8,596. You pay about $2,559 more for the lower payment.

How It Works

An auto loan is an installment loan: you borrow a fixed amount and repay it with interest in equal monthly payments over a set term. This calculator estimates that payment from the vehicle price, down payment, trade-in value, sales tax, interest rate (APR) and loan length.

The calculation begins with the amount you actually finance. We add sales tax to the vehicle price (after the trade-in credit, where your state allows it), then subtract your down payment and trade-in. The remaining balance is amortized at your APR over the number of months you select. The results show your monthly payment, the total interest you will pay over the life of the loan, and the all-in cost of the vehicle, including what you paid up front.

Try changing the term to see the trade-off. A 72- or 84-month loan lowers the monthly payment but can cost thousands more in interest, and it raises the risk of owing more than the car is worth (negative equity) if the vehicle depreciates quickly. A larger down payment reduces the amount financed, the interest you pay and often the rate you qualify for.

Before you sign, get pre-approved by a bank or credit union so you can compare the dealer’s financing against a competing offer. Remember that registration, title fees, documentation fees, extended warranties and insurance are not included here, and a lower monthly payment is not always the better deal. Always compare the total cost of each offer.

Formula Explained

Amount financed = price + sales tax − down payment − trade-in

Monthly payment = F × r ÷ (1 − (1 + r)−n) with r = APR ÷ 12 and n = months.

Total interest = payment × n − F