Business Skill Forge · Calculators

Auto Loan Calculator

Work out your monthly car payment, the total interest you’ll pay, and the true cost of the vehicle once financing is included.

Vehicle price ($)?The negotiated price of the car before tax, down payment, or trade-in. Down payment ($)?Cash you pay up front. A larger down payment lowers your monthly payment and total interest. Trade-in value ($)?The value of a vehicle you’re trading in. In most states it also reduces the taxable amount. Sales tax (%)?Your state/local sales tax rate on the vehicle. Applied to price minus trade-in in most states. Interest rate (%/yr)?The annual percentage rate on the auto loan. Rates depend heavily on your credit score. Loan term?How long you’ll repay the loan. Longer terms lower the monthly payment but raise total interest.

Enter your details and press Calculate to see your car payment.

How the auto loan calculator works

The calculator first works out how much you actually finance: the vehicle price plus sales tax, minus your down payment and any trade-in. That amount is repaid as a standard amortizing loan, so early payments are mostly interest and later ones mostly principal. Sales tax is applied to the price less your trade-in, which is how most US states treat it.

Amount financed = Price + Sales tax − Down payment − Trade-in
Sales tax = (Price − Trade-in) × tax rate
Monthly = Financed × r / (1 − (1 + r)^−n), r = rate/12

Total interest is what the loan costs you on top of the amount financed. For a home loan instead, use our Mortgage Payment Calculator; for any general loan, the Loan / EMI Calculator.

Tips for a cheaper car loan

The two biggest levers are your interest rate and your loan term. A strong credit score can cut your rate by several points, and choosing a 48-month term over 72 months saves a large amount of interest even though the monthly payment is higher. Beware very long terms: they make the monthly payment look affordable but you can end up owing more than the car is worth.

Shop the rate, not the payment: dealers may lengthen the term to hit a monthly number while quietly raising total cost.
Put more down: a bigger down payment reduces interest and the risk of going “underwater” on the loan.
Get pre-approved: a bank or credit union pre-approval gives you leverage and a rate to beat.

Frequently asked questions

Does a trade-in reduce my sales tax? +

In most US states, yes — you only pay sales tax on the price after your trade-in is deducted, which can save hundreds or thousands of dollars. A few states tax the full price. This calculator applies the common trade-in tax credit.

What loan term should I choose? +

Shorter is cheaper overall. A 48- or 60-month loan balances an affordable payment with reasonable total interest. Terms of 72-84 months lower the monthly payment but cost far more interest and keep you underwater longer.

How does my credit score affect the rate? +

Enormously. Borrowers with excellent credit may qualify for rates several percentage points lower than those with fair credit, which can change the monthly payment and total interest substantially. Check your score before shopping.

Should I include taxes and fees? +

This tool adds sales tax to the financed amount. Registration, documentation, and dealer fees vary by state and dealer; add them to the vehicle price if you plan to finance them too.

Is it better to pay cash or finance? +

If the loan rate is low and you can earn more by investing the cash, financing can make sense. If the rate is high, paying cash (or a larger down payment) avoids costly interest. Compare the loan rate to what your money could earn elsewhere.

This calculator is an educational estimate, not a financing offer. Actual rates, taxes, and fees depend on your lender, state, and credit profile. Confirm all figures with your lender or dealer before signing.

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