Auto Loan Calculator

Calculate monthly car payments, total interest, and view amortization schedules. Factor in trade-in, down payment, taxes, and fees.

Auto Price ($)

Loan Term (months)

Interest Rate (%)

Cash Incentives ($)

Down Payment ($)

Trade-in Value ($)

Amount Owed on Trade-in ($)

Sales Tax (%)

Title, Registration & Fees ($)

Include all fees in loan

Monthly Payment

$834.11

Loan Amount

$44,200.00

Sales Tax

$2,000.00

Upfront Payment

$10,000.00

Total Payments

$50,046.52

Total Interest

$5,846.52

Total Cost

$60,046.52

Loan Breakdown

Principal Interest Tax Fees

How Auto Loans Work

An auto loan is a secured loan using the vehicle as collateral. You borrow the purchase price minus your down payment and trade-in equity, then repay with interest over a fixed term. Missing payments can result in repossession.

What Affects Your Monthly Payment

Vehicle price: The sticker price or negotiated purchase price
Down payment: Cash paid upfront — more down = lower monthly payment and less interest
Trade-in equity: Your current car's value minus any remaining loan balance
Interest rate: Based on credit score, loan term, and lender
Loan term: Longer terms mean lower payments but more total interest
Taxes and fees: Sales tax, title, registration, and dealer documentation fees

Total Cost of Ownership

The monthly payment is just one piece. True cost includes:

Purchase price + interest: What you pay for the car over the loan term
Insurance: Full coverage is typically required for financed vehicles
Depreciation: New cars lose 20-30% of value in the first year
Maintenance: Tires, oil changes, repairs increase over time
Fuel: Factor in annual mileage and fuel efficiency

Loan Term Comparison

On a $30,000 loan at 6% interest:

36 months: $913/mo — $2,862 total interest
48 months: $704/mo — $3,807 total interest
60 months: $580/mo — $4,799 total interest
72 months: $497/mo — $5,834 total interest

Each additional year adds roughly $1,000 in interest costs.

Tips for Getting the Best Auto Loan

Check your credit score first: A score above 720 qualifies for the best rates
Get pre-approved: Apply at your bank or credit union before visiting the dealer
Negotiate the price, not the payment: Dealers can manipulate payment amounts by extending the term
Put at least 20% down: Avoid being underwater (owing more than the car is worth)
Keep the term under 60 months: Balances interest costs with affordable payments
Avoid add-ons: Extended warranties, GAP insurance, and paint protection can add thousands

Understanding the Amortization Schedule

Early payments are mostly interest; later payments are mostly principal. This is why paying extra toward principal early in the loan saves the most money. Even an extra $50/month can shave months off the loan and save hundreds in interest.

Related Calculators

Pay Raise Calculator — % or Flat, Hourly to Yearly

Calculate your new pay after a raise — percentage, flat amount, or new rate. See hourly, weekly, monthly, and yearly breakdowns.

401(k) Calculator — Retirement, Match, Withdrawal

Estimate your 401(k) balance at retirement, calculate early withdrawal costs, and optimize employer match contributions.

Simple Interest Calculator — Solve I = Prt Any Way

Calculate simple interest on loans and investments. Solve for balance, principal, rate, or term with step-by-step work.

Compound Interest Calculator — Daily, Monthly, Yearly

Calculate compound interest with contribution timing, cumulative breakdown, and year-by-year growth showing principal vs contributions vs interest.

APY Calculator — Annual Yield from Nominal Rate

Calculate annual percentage yield from a nominal interest rate and compounding frequency. Estimate future value and total interest.

Cap Rate Calculator — Rental Property NOI & Yield

Calculate cap rate from NOI and property value, or reverse it to find a property's value at a target cap rate. Free real estate calculator with NOI breakdown.

Frequently Asked Questions

How is monthly auto loan payment calculated?

Using the standard amortization formula: M = P × r(1+r)^n / ((1+r)^n - 1), where P is the loan amount, r is the monthly interest rate, and n is the number of months.

Should I include taxes and fees in my auto loan?

Rolling taxes and fees into the loan means a lower upfront cost but higher total interest paid over the life of the loan. Paying them upfront saves money long-term.

What is a good interest rate for a car loan?

As of 2025, good rates range from 4-7% for new cars and 5-9% for used cars. Rates depend on credit score, loan term, and lender. Credit unions often offer lower rates than dealerships.

How does trade-in value affect my loan?

Trade-in value reduces the amount financed. If you owe more than the trade-in is worth (negative equity), the difference is added to your new loan.

What loan term should I choose?

36-48 months minimizes interest but means higher payments. 60-72 months lowers payments but costs more in total interest. Avoid 84+ month loans — you risk owing more than the car is worth.

What fees are typically included in a car purchase?

Common fees include title ($15-100), registration ($50-500), documentation ($0-700), and dealer fees. These vary by state and dealership.

What is GAP insurance on an auto loan?

GAP (Guaranteed Asset Protection) insurance covers the difference between what you owe on the loan and what the vehicle is worth if it is totaled or stolen. It matters most on new cars or long-term loans where depreciation can quickly create negative equity.

What is the risk of rolling negative equity into a new car loan?

Rolling negative equity means you borrow more than the new car is worth from day one, which accelerates the cycle of being underwater on every subsequent vehicle. Paying off the old loan balance or contributing cash to cover the gap is the safer approach.