Auto Loan Calculator
Calculate your monthly car payment, total interest paid, and the true total cost of your auto loan instantly.
How to Use the Auto Loan Calculator
- 1
Enter the vehicle price, your down payment amount, and the trade-in value of your current car. If you have no trade-in enter 0.
- 2
Enter the annual interest rate from your lender or bank and select your preferred loan term. Longer terms lower your monthly payment but increase total interest paid.
- 3
Enter your state sales tax rate. In the US this typically ranges from 0% in states like Oregon and Montana to over 9% in states like California and Tennessee. Enter 0 if tax is already included in the price.
- 4
Click Calculate to see your monthly payment, true total cost, and complete month-by-month amortization schedule. Download the free PDF report to keep.
Example Auto Loan Calculation
Scenario: Vehicle Price $35,000 | Down Payment $5,000 | Trade-In $2,000 | Rate 7.5% | Term 60 months | Sales Tax 8%
- Sales Tax: $2,640.00
- Loan Amount: $30,640.00
- Monthly Payment: $613.96
- Total Interest Paid: $6,197.76
- True Total Vehicle Cost: $37,640.00
- First Month Interest: $191.50
- First Month Principal: $422.46
- Payoff Date: March 2031
"In this example, your total vehicle cost includes the sticker price plus $2,640 in sales tax. You finance $30,640 after applying $7,000 in combined down payment and trade-in. Over 5 years, you pay about $6,200 in interest."
Frequently Asked Questions
How is a monthly car payment calculated?
Your monthly car payment is calculated using the standard loan amortization formula based on your loan amount, annual interest rate, and loan term in months. The loan amount is your vehicle price minus your down payment and trade-in value plus applicable sales tax. A longer loan term lowers your monthly payment but increases the total interest you pay over the life of the loan.
What is a good interest rate for an auto loan in 2026?
In 2026 average auto loan rates in the US range from approximately 6% to 9% for new vehicles and 8% to 13% for used vehicles depending on your credit score and lender. Borrowers with excellent credit scores above 750 can often secure rates below 6%. Credit unions typically offer lower rates than dealership financing. Always shop multiple lenders before accepting a rate.
Should I make a larger down payment on a car?
Yes — a larger down payment reduces your loan amount which lowers both your monthly payment and total interest paid. It also reduces the risk of being upside down on your loan where you owe more than the car is worth. A down payment of 20% or more on a new car and 10% or more on a used car is generally recommended by financial advisors.
What is the best auto loan term length?
A 36 to 48 month term is generally best because it balances manageable monthly payments with lower total interest. While 72 and 84 month loans have lower monthly payments they cost significantly more in total interest and increase the risk of negative equity since cars depreciate faster than you pay down a long-term loan. Only choose a longer term if the shorter term payment is genuinely unaffordable.
How does my trade-in affect my auto loan?
Your trade-in value is applied directly to reduce the amount you need to finance. For example trading in a car worth $5,000 on a $30,000 vehicle means you only finance $25,000 plus applicable taxes and fees. In most US states sales tax is calculated on the vehicle price minus the trade-in value which also reduces your tax bill. Always get your trade-in appraised by multiple dealers or use services like Carmax or KBB to know its true value.
Disclaimer: This calculator provides estimates for informational purposes only. TheCalcTool is not a licensed financial legal or tax advisor. Auto loan calculations are estimates based on the inputs provided assuming a fixed interest rate and equal monthly payments. Sales tax rules vary by state. Actual loan terms may vary by lender. Please consult a qualified financial professional before making any vehicle purchase decisions.