Estimate your monthly car payment in seconds. This free auto loan calculator factors in your down payment, trade-in value, sales tax and interest rate, then shows your monthly payment, total interest and the full cost of financing the vehicle.
Vehicle & loan
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Monthly payment
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Enter a vehicle price and interest rate
Loan amount
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Sales tax
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Total interest
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Total of payments
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Results update automatically as you type. Estimates only — confirm exact figures with your lender or dealer.
Use this free auto loan calculator to estimate your monthly car payment in seconds. Enter the vehicle price, your down payment, trade-in value, sales tax and interest rate to see your payment, total interest and the full cost of the loan.
What this auto loan calculator shows you
An auto loan calculator estimates your monthly car payment from the vehicle price, down payment, trade-in, sales tax, interest rate and loan term. It also shows your total loan amount, total interest and the total of all payments — the real cost of financing the car.
Knowing your payment before you visit the dealer puts you in control. It helps you set a realistic budget, judge whether a term is too long, and spot when a low monthly payment is hiding a high total cost.
How to use the auto loan calculator
Enter the vehicle price. The agreed sticker or sale price of the car.
Add your down payment and trade-in. Both reduce the amount you need to finance.
Enter the interest rate and sales tax. Use the APR your lender quoted and your local tax rate.
Choose your loan term. 36, 48, 60 or 72 months.
Read your result. Your monthly payment and total interest update instantly.
How auto loan payments are calculated
Your monthly car payment uses the standard amortization formula, applied to the amount you finance:
M = P × [ r(1 + r)n ] ÷ [ (1 + r)n − 1 ]
Where:
M = monthly payment
P = amount financed (price + sales tax − down payment − trade-in)
r = monthly interest rate (APR ÷ 12 ÷ 100)
n = number of payments (loan term in months)
Sales tax is usually added to the amount you finance. In many states a trade-in lowers the taxable amount, so this calculator applies sales tax to the price minus your trade-in.
Auto loan example
Suppose you buy a $35,000 car with a $5,000 down payment, 7% sales tax, a 6.5% APR and a 60-month term:
Detail
Amount
Sales tax
$2,450
Amount financed
$32,450
Monthly payment
$635
Total interest
$5,645
Total of payments
$38,095
How loan term affects your car payment
A longer term lowers your monthly payment but increases the total interest you pay. The same $32,450 loan at 6.5% looks very different across terms:
Term
Monthly
Total interest
36 months
$994
$3,329
48 months
$770
$4,495
60 months
$635
$5,645
72 months
$545
$6,810
Tips for a lower car payment
Put more money down. A bigger down payment shrinks the amount financed and the interest.
Keep the term short. 60 months or less limits total interest and the risk of going “underwater.”
Improve your credit first. A better score can drop your APR by several points.
Get pre-approved. A bank or credit union offer gives you leverage against dealer financing.
Don’t focus only on the monthly payment. Dealers can lower it by stretching the term — watch the total cost.
Auto loan terms glossary
Term
What it means
APR
Annual percentage rate — the yearly cost of the loan including most fees.
Amount financed
The loan size after down payment, trade-in and added sales tax.
Trade-in value
What the dealer credits you for your old vehicle.
Underwater / upside-down
Owing more on the loan than the car is worth.
Down payment
Cash you pay upfront, reducing the amount financed.
Term
The length of the loan, usually 36 to 72 months.
Auto Loan Calculator FAQ
How is a monthly car payment calculated?
A car payment uses the amortization formula M = P × r(1 + r)n ÷ ((1 + r)n − 1), where P is the amount financed (price plus sales tax, minus down payment and trade-in), r is the monthly interest rate (APR ÷ 12), and n is the term in months.
Does a trade-in reduce my sales tax?
In many U.S. states, yes — your trade-in lowers the taxable amount, so you only pay sales tax on the price minus the trade-in value. A few states tax the full price, so check your local rules. This calculator applies tax to the price minus trade-in.
What is a good auto loan term?
60 months or less is generally recommended. Longer terms like 72 or 84 months lower the monthly payment but increase total interest and the risk of owing more than the car is worth.
How much should I put down on a car?
A common guideline is 20% down on a new car and 10% on a used car. A larger down payment reduces the amount financed, your monthly payment and the total interest you pay.
Should I get pre-approved before going to the dealer?
Yes. A pre-approval from a bank or credit union shows the rate you qualify for and gives you leverage to negotiate against the dealer's financing offer.
What does it mean to be upside-down on a car loan?
Being upside-down, or underwater, means you owe more on the loan than the car is currently worth. It's more likely with long terms, small down payments and fast depreciation.
Is the auto loan calculator free to use?
Yes, this auto loan calculator is completely free, needs no sign-up, and gives instant results directly in your browser.
