Auto Loan Calculator

Estimate your monthly car payments and see how much you'll pay in total interest over the life of your loan.

Car Price ($)

Down Payment ($)

Trade-in Value ($)

Loan Term (months)

Interest Rate (%)

Taxes & Fees

Sales Tax (%)

Dealer/Doc Fees ($)

Estimated Monthly Payment

$612.62

Loan Breakdown

Principal (Loan Amount)$31,310.00

Total Interest Paid$5,446.97

Vehicle Price$35,000.00

Sales Tax (7.00%)$2,310.00

Fees$1,000.00

Minus Down Payment-$5,000.00

Minus Trade-in-$2,000.00

Total Financed (Loan Amount)$31,310.00

True Cost of Vehicle
(Down Payment + Trade-in + Total Payments)

$43,756.97

This chart shows the breakdown of your total loan payments (Principal + Interest).

Annual Amortization Schedule

Year	Interest Paid	Principal Paid	Remaining Balance
Year 1	$1,873.88	$5,477.52	$25,832.48
Year 2	$1,507.04	$5,844.36	$19,988.13
Year 3	$1,115.63	$6,235.76	$13,752.36
Year 4	$698.01	$6,653.39	$7,098.97
Year 5	$252.42	$7,098.97	$0.00

Year 1$25,832.48

Principal Paid:$5,477.52

Interest Paid:$1,873.88

Year 2$19,988.13

Principal Paid:$5,844.36

Interest Paid:$1,507.04

Year 3$13,752.36

Principal Paid:$6,235.76

Interest Paid:$1,115.63

Year 4$7,098.97

Principal Paid:$6,653.39

Interest Paid:$698.01

Year 5$0.00

Principal Paid:$7,098.97

Interest Paid:$252.42

How to Use the Auto Loan Calculator

Buying a car involves more than just the sticker price. Our calculator factors in the hidden costs to give you an accurate picture of your monthly payments and total expenses.

Car Price: The negotiated price of the vehicle, before any taxes or fees are applied.
Down Payment & Trade-in: Upfront value you provide. Your trade-in value usually reduces the taxable amount of the new car, saving you money on sales tax in most states.
Sales Tax: The percentage charged by your state and local government.
Dealer/Doc Fees: Dealerships charge administrative fees to process paperwork. These can range from $100 to over $1,000 depending on the dealership and state laws.
Loan Term: The length of the loan. While 60 months (5 years) used to be standard, 72 and 84-month loans are becoming more common. Longer terms mean lower monthly payments but significantly higher total interest paid.

The "True Cost" of a Car

When a dealer asks, "What monthly payment are you looking for?", be careful. They can often hit your target monthly payment by simply extending the loan term to 72 or 84 months, masking the true cost of the vehicle.

The True Cost of your vehicle is the sum of:

Your Down Payment
Your Trade-in Value
Every single monthly payment you make over the life of the loan

Example: A $35,000 car with zero down at 7% interest over 84 months yields a monthly payment of about $528. But you will end up paying almost $44,400 total—nearly $10,000 in interest alone!

Tips for Negotiating

1. Secure Outside Financing First

Get pre-approved for a car loan from your local bank or credit union before going to the dealership. This gives you a baseline rate. The dealer must beat this rate to win your financing business.

2. Negotiate the Price, Not the Payment

Always negotiate the total "Out-The-Door" (OTD) price of the vehicle. Do not negotiate based on the monthly payment, as dealers can manipulate terms and interest rates to hit a payment target while overcharging for the car.

3. Keep Trade-ins Separate

Negotiate the purchase price of the new car first. Only after you agree on the price should you introduce your trade-in. This prevents the dealer from mixing the numbers to make a bad trade-in offer look like a good discount on the new car.

4. Review the Itemized Contract

Watch out for unwanted add-ons in the final finance office (like VIN etching, fabric protection, or overpriced extended warranties). You have the right to decline these optional extras.

Leasing vs. Buying

Not sure whether to take out a loan or sign a lease? Here's a quick comparison:

Feature	Buying (Loan)	Leasing
Ownership	You own the car after the loan is paid off.	You return the car at the end of the lease (usually 3 years).
Monthly Payments	Usually higher, as you are paying for the full value of the car.	Usually lower, as you only pay for the depreciation during the lease term.
Mileage Limits	None. Drive as much as you want.	Strict limits (e.g., 10,000 miles/year). Heavy fees for going over.
Long-term Cost	Cheaper in the long run if you keep the car for years after paying it off.	More expensive in the long run, as you are in a perpetual cycle of payments.

Sources & Methodology

Our auto loan calculator uses standard amortizing loan mathematics to determine your monthly payment:

M = P [ r(1 + r)^n ] / [ (1 + r)^n - 1 ]

Where:

M = Total monthly payment
P = Principal loan amount (Total cost minus down payment and trade-in)
r = Monthly interest rate (annual rate divided by 12)
n = Number of payments (loan term in months)

Note on Taxes: The calculator assumes that in your state, the trade-in value is deducted from the purchase price before sales tax is calculated (which is true for the majority of US states).

Data References:

Frequently Asked Questions

What does "upside down" or "negative equity" mean?▼

Being "upside down" means you owe more on your auto loan than the car is currently worth. This commonly happens if you put very little money down and take out a long loan (e.g., 72 or 84 months), because new cars depreciate rapidly in the first two years while you are mostly paying interest.

Should I take the dealer rebate or the 0% financing?▼

Manufacturers often make you choose between a cash rebate (which lowers the purchase price) or promotional low-interest financing (like 0% or 1.9%). You should calculate both scenarios. Often, taking the cash rebate and getting a standard interest loan from a credit union results in a lower overall cost than taking the 0% financing at the higher sticker price.

Is GAP insurance worth it?▼

Guaranteed Asset Protection (GAP) insurance covers the difference if your car is totaled and your standard insurance pays out less than what you still owe on the loan. It is highly recommended if you are putting down less than 20%, as you will likely be "upside down" on the loan for the first few years.