Auto Loan Calculator
Calculate your monthly car payment, total interest, and the total cost of your vehicle. Factor in down payments, trade-ins, and sales tax for a complete financial picture.
About Auto Loan Calculator
Buying a car is one of the most significant purchases most people make. An auto loan calculator helps you navigate the complexities of vehicle financing by breaking down the costs into manageable monthly payments.
Our tool considers the vehicle price, your down payment, trade-in value, and local sales tax to give you the most accurate estimate possible of what you'll actually pay at the dealership and over the life of the loan.
What This Calculator Is Good For
- Budgeting: Find out how much car you can actually afford based on a monthly payment goal.
- Negotiating: Go to the dealership with a clear understanding of your financing needs.
- Trade-in Analysis: See how much your trade-in actually reduces your monthly obligation.
- Tax Planning: Factor in sales tax, which can add thousands to the total price of a vehicle.
Limitations & Considerations
- Dealer Fees: This calculator doesn't include documentation fees, title fees, or registration costs.
- Insurance: Car insurance is a major monthly expense not included in this calculation.
- Maintenance: Fuel, repairs, and regular maintenance are additional costs of ownership.
- Credit Score: Your actual interest rate will depend heavily on your credit history.
Auto Loan Formula
Total Loan Amount:
L = (Price - Down Payment - Trade-in) * (1 + Tax Rate)
Monthly Payment:
P = [ r * L ] / [ 1 - (1 + r)^-n ]
Where:
r = Monthly interest rate (Annual Rate / 12 / 100)
n = Total number of months
L = (Price - Down Payment - Trade-in) * (1 + Tax Rate)
Monthly Payment:
P = [ r * L ] / [ 1 - (1 + r)^-n ]
Where:
r = Monthly interest rate (Annual Rate / 12 / 100)
n = Total number of months
Frequently Asked Questions
How much down payment should I put on a car?
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A common rule of thumb is 20% down for a new car and 10% for a used car. A larger down payment reduces your monthly payment and the total interest you'll pay.
What is a typical auto loan term?
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Most auto loans range from 36 to 72 months. While 72 or 84-month loans offer lower monthly payments, you'll pay significantly more in interest and risk being "underwater" on the loan.
Does sales tax apply to the full price or after trade-in?
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This varies by state. In many US states, you only pay sales tax on the "net price" (Vehicle Price minus Trade-in Value). Our calculator applies tax to the net price.
What is GAP insurance?
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Guaranteed Asset Protection (GAP) insurance covers the "gap" between what you owe on your car and its actual cash value if it's totaled or stolen. It's often recommended if you have a low down payment.
Can I refinance an auto loan?
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Yes, if interest rates have dropped or your credit score has improved, refinancing can lower your monthly payments or reduce the total interest you pay.