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.
Results update automatically as you type. Estimates only — confirm exact figures with your lender or dealer.
How the Auto Loan Calculator Works
This auto loan calculator estimates your monthly car payment by combining the vehicle’s price, your down payment and trade-in, sales tax, and your loan’s interest rate and term into a single fixed monthly installment — the same amortizing-loan math lenders use to set your payment.
Formula: Sales tax = (Vehicle price − Trade-in value) × Tax rate. Loan amount L = Vehicle price + Sales tax − Down payment − Trade-in value. Monthly payment M = L × [r(1+r)^n] / [(1+r)^n − 1]
- M — the fixed monthly payment on the loan
- P — vehicle price before tax, down payment or trade-in credit
- D — down payment made at purchase
- T — trade-in value, which also lowers the taxable amount in many states
- r — monthly interest rate (annual APR ÷ 12)
- n — loan term in months (36, 48, 60 or 72)
Example Scenarios
| Vehicle Price | Down Payment | Trade-in Value | APR | Loan Term | Monthly Payment |
|---|---|---|---|---|---|
| $20,000 | $2,000 | $0 | 6% | 60 mo | $348 |
| $30,000 | $3,000 | $5,000 | 7% | 60 mo | $436 |
| $40,000 | $5,000 | $0 | 5% | 72 mo | $564 |
| $50,000 | $10,000 | $10,000 | 6.5% | 60 mo | $587 |
| $25,000 | $5,000 | $0 | 0% | 60 mo | $333 |
Auto Loan Calculator FAQ
Does trading in my car lower the sales tax I pay on the new one?
In many states, yes — the trade-in value is subtracted from the vehicle price before sales tax is calculated, which lowers your total tax bill. Other states tax the full purchase price regardless of trade-in. Rules vary, so confirm your state’s policy with the dealer before signing.Why is my loan amount bigger than the price minus my down payment?
Sales tax and fees are usually rolled into the loan rather than paid upfront. If your state taxes the vehicle price, that tax gets added to the balance before your down payment and trade-in are subtracted, so the financed amount can exceed the sticker price minus what you put down.Does a longer loan term always mean I pay more interest overall?
Generally yes. Stretching the same loan amount over more months lowers the monthly payment but increases the total interest paid, since you’re carrying a balance longer. A 72-month loan typically costs noticeably more in interest than the same loan at 48 or 60 months, even at the same rate.How much does a bigger down payment actually save me?
A larger down payment reduces the amount you finance, which lowers both your monthly payment and the total interest charged over the loan, since interest accrues on the outstanding balance. It also builds equity faster, reducing the risk of owing more than the car is worth.What loan term should I choose for a car loan?
Shorter terms (36-48 months) mean higher monthly payments but less total interest and faster equity. Longer terms (60-72 months) ease monthly cash flow but cost more overall and increase the chance the car depreciates faster than you pay it down. Match the term to your budget and how long you’ll keep the car.Does the interest rate I qualify for depend on my credit score?
Yes — lenders price auto loans largely on credit history, along with loan term, vehicle age and whether the car is new or used. Rates can vary substantially between lenders for the same borrower, so it’s worth comparing offers from a bank, credit union and the dealer before committing.Related Calculators
If you’re comparing financing options for a different type of vehicle, try the car loan calculator for a new or used car. For loans outside auto financing, the general loan calculator handles any fixed-rate installment loan, and the debt-to-income ratio calculator can help you see how a new car payment fits alongside your other monthly debts.