Calculate your monthly car payment, total interest, and complete cost of an auto loan. Includes sales tax, trade-in value, cash incentives, and a full amortization schedule.
| Total Loan Amount | $0.00 |
| Sale Tax | $0.00 |
| Upfront Payment | $0.00 |
| Total of 60 Loan Payments | $0.00 |
| Total Loan Interest | $0.00 |
| Total Cost (price, interest, tax, fees) | $0.00 |
| Year | Interest | Principal | Ending Balance |
|---|
An auto loan calculator is a free online tool that helps you estimate your monthly car payment and understand the total cost of financing a vehicle. Whether you're buying a new or used car, this calculator provides a complete breakdown of your loan, including the principal amount, interest charges, sales tax, dealer fees, trade-in value, and cash incentives.
Using a car loan calculator before visiting a dealership gives you a realistic budget and helps you negotiate from a position of strength. You'll know exactly what you can afford and what your monthly payment should be.
Simply enter the following details into the calculator:
Click "Calculate Auto Loan" and the tool will instantly display your monthly payment, total interest paid, and a full amortization schedule.
The monthly payment on an auto loan is calculated using the standard amortization formula:
Where:
This formula ensures that each payment covers both the interest owed and a portion of the principal, so the loan is fully paid off by the end of the term.
Most U.S. states charge sales tax on vehicle purchases. The tax is typically calculated as a percentage of the purchase price. Some states offer a tax reduction when you trade in a vehicle—the tax is calculated only on the difference between the new car price and the trade-in value.
The five states with no sales tax on auto purchases are:
States that do not offer a trade-in tax reduction include California, Hawaii, Kentucky, Maryland, Michigan, Montana, Virginia, and the District of Columbia.
The amortization schedule shows how each monthly payment is split between interest and principal over the life of the loan. In the early months, a larger portion of your payment goes toward interest because the balance is highest. As the loan progresses, the interest portion shrinks and the principal portion grows.
This calculator provides both annual and monthly amortization schedules so you can see exactly how your loan balance decreases over time.
Whether to finance taxes and fees depends on your situation:
If you can afford to pay taxes and fees upfront without draining your emergency fund, that's usually the better financial choice.
New cars typically come with lower interest rates—especially when manufacturers offer promotional financing like 0% APR for qualified buyers. However, new cars depreciate rapidly, often losing 20% of their value in the first year alone. This means you could owe more than the car is worth shortly after purchase.
Used car loans usually have higher interest rates, but the vehicle has already absorbed the steepest depreciation. Buying a 2–3 year old used car is often the sweet spot for value and reliability.
Paying off your auto loan early can save you money on interest. However, some lenders charge a prepayment penalty—a fee for paying off the loan before the term ends. Most reputable lenders do not charge prepayment penalties, but always check your loan agreement before signing.
Q: What is a good interest rate for an auto loan?
A: As of recent data, average auto loan rates range from about 3–5% for new cars for borrowers with excellent credit, to 10–15% or more for used cars for borrowers with poor credit. Your specific rate depends on your credit score, loan term, and other factors.
Q: How much should I put down on a car?
A: A down payment of 20% is often recommended. This helps you avoid going underwater on the loan (owing more than the car is worth) and reduces your monthly payments.
Q: Can I get an auto loan with bad credit?
A: Yes, but you'll likely face higher interest rates and may need a larger down payment. Some lenders specialize in subprime auto loans, but these often come with very high rates. It's worth working on improving your credit before applying.
Q: What happens if I can't make my auto loan payments?
A: If you miss payments, your lender can repossess the vehicle. Repossession damages your credit score and you may still owe the remaining balance after the car is sold. If you're struggling to make payments, contact your lender immediately to discuss options.
Q: Is it better to finance through a dealer or a bank?
A: It depends. Dealers sometimes offer promotional rates (like 0% APR) that banks can't match, but you may get a better rate from a bank or credit union if you have good credit. Get pre-approved from a bank first, then compare with what the dealer offers.
Q: How long should my auto loan term be?
A: The most common term is 60 months (5 years), which balances affordable monthly payments with reasonable total interest. Shorter terms (36–48 months) save on interest but have higher monthly payments. Longer terms (72–84 months) lower monthly payments but cost significantly more in interest and increase the risk of going underwater.
Q: Can I negotiate the interest rate on an auto loan?
A: Yes, especially at credit unions and banks. Dealers may also have some room to negotiate, but their "buy rate" (the rate they get from the lender) is usually the floor. Getting pre-approved from another lender gives you leverage.