Auto Loan Calculator | Estimate Car Payments

Auto Loan Calculator

Modify the values and click the calculate button to use

Monthly Payment

$0.00

Loan Details

Total Loan Amount $0.00
Sales Tax $0.00
Upfront Payment $0.00
Total of 0 Loan Payments $0.00
Total Loan Interest $0.00
Total Cost (price, interest, tax, fees) $0.00

Loan Breakdown

Principal
Interest

Find Average Tax Rate and Fees in Your State

Select your state above to see tax rates. Fees vary by location.

YearInterestPrincipalEnding Balance
MonthPaymentInterestPrincipalRemaining Balance

Auto Loans

Most people turn to auto loans during a vehicle purchase. They work as any generic, secured loan from a financial institution does with a typical term of 36, 60, 72, or 84 months in the U.S. Each month, repayment of principal and interest must be made from borrowers to auto loan lenders. Money borrowed from a lender that isn’t paid back can result in the car being legally repossessed.

Dealership Financing vs. Direct Lending

Generally, there are two main financing options available when it comes to auto loans: direct lending or dealership financing. The former comes in the form of a typical loan originating from a bank, credit union, or financial institution. Once a contract has been entered with a car dealer to buy a vehicle, the loan is used from the direct lender to pay for the new car. Dealership financing is somewhat similar except that the auto loan, and thus paperwork, is initiated and completed through the dealership instead.

Auto Loan Strategies

Preparation

Probably the most important strategy to get a great auto loan is to be well-prepared. This means determining what is affordable before heading to a dealership first. Knowing what kind of vehicle is desired will make it easier to research and find the best deals to suit your individual needs.

Credit

Credit, and to a lesser extent, income, generally determines approval for auto loans, whether through dealership financing or direct lending. In addition, borrowers with excellent credit will most likely receive lower interest rates, which will result in paying less for a car overall.

Buying a Car with Cash Instead

Although most car purchases are made with auto loans in the U.S., there are benefits to buying a car outright with cash:

  • Avoid Monthly Payments – Paying with cash relinquishes a person of the responsibility of making monthly payments.
  • Avoid Interest – No financing involved in the purchase of a car means there will be no interest charged.
  • Future Flexibility – Because ownership of a car is 100% after paying in full.

Trade-in Value

A trade-in is a process of selling your vehicle to the dealership in exchange for credit toward purchasing another vehicle. Don’t expect too much value when trading in old cars to dealerships. Selling old cars privately and using the funds for a future car purchase tends to result in a more financially desirable outcome.

In most of the states that collect sales tax on auto purchases (not all do), the sales tax collected is based on the difference between the new car and trade-in price. For a $50,000 new car purchase with a $10,000 trade-in value, the tax paid on the new purchase with an 8% tax rate is:

($50,000 – $10,000) × 8% = $3,200

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Auto Loan Calculator Step-by-Step Instructions

1. Enter Basic Loan Details

  • Auto Price ($): Enter the total price of the vehicle.
    (Example: $35,000)
  • Loan Term (months): Select the loan duration (e.g., 36, 60, or 72 months).
  • Interest Rate (%): Enter the annual interest rate.
    (Example: 5.5%)

2. Adjust Incentives & Payments

  • Cash Incentives ($): Enter any rebates or cash-back offers.
  • Down Payment ($): Enter how much you’ll pay upfront.
  • Trade-in Value ($): Enter your current car’s trade-in value (if applicable).
  • Amount Owed on Trade-in ($): If you still owe money on your trade-in, enter the remaining balance.

3. Set Taxes & Fees

  • Your State: Select your state to auto-fill the sales tax rate.
  • Sales Tax (%): Adjust if needed (defaults to your state’s rate).
  • Title, Registration & Fees ($): Estimate additional costs (e.g., $500).
  • ☑ Include taxes/fees in loan?
    • ✔ Check = Taxes/fees are added to the loan (higher monthly payments).
    • ✖ Uncheck = Pay taxes/fees upfront (lower loan amount).

4. Click “Calculate”

  • Instantly see your Monthly Payment and full loan breakdown.

Understanding the Results

Loan Summary

  • Monthly Payment: Your estimated payment (principal + interest).
  • Total Loan Amount: The financed amount after incentives/down payment.
  • Total Interest: How much interest you’ll pay over the loan term.
  • Total Cost: Vehicle price + interest + taxes/fees.

Visual Loan Breakdown

  • pie chart shows what portion of payments go toward principal vs. interest.

Amortization Schedule

  • Switch between tabs to see:
    • Annual Schedule: Yearly interest/principal paid.
    • Monthly Schedule: Detailed payment-by-payment breakdown.
Modern smartphone displaying an auto loan calculator app on a car dashboard, showing monthly payment calculations with a luxury car blurred in the background.
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1. How accurate is this calculator?

✅ Very accurate for estimates – It uses standard loan amortization formulas. However:

  • Actual loan terms may vary based on lender fees, credit score, and exact APR.
  • Taxes/fees depend on your location (always verify with your dealer).

2. Why does my monthly payment seem high?

Common reasons:

  • Long loan term (e.g., 84 months) = more interest paid over time.
  • High interest rate (check current market rates here).
  • Low down payment (try increasing it to reduce payments).

3. Should I include taxes/fees in the loan?

✔ Pros:

  • Lower upfront cost.
    ✖ Cons:
  • Higher monthly payments + more interest paid overall.
    → Tip: If possible, pay taxes/fees upfront to save money.

4. How does a trade-in affect my loan?

  • Trade-in value reduces the loan amount (good!).
  • Amount owed on trade-in is added back if not paid off.
    → Example: Trading a car worth $10,000 but owing $5,000? Only $5,000 reduces your new loan.

5. What’s an amortization schedule?

A table showing:

  • How each payment splits between principal (car price) and interest.
  • Early payments = mostly interest; later = more principal.
    → Key Insight: Paying extra early saves the most interest.

6. Can I calculate a lease instead of a loan?

❌ No – This tool is for auto loans only. Try our Auto Lease Calculator for leases.


7. Why do some states tax the full price (not trade-in difference)?

States like CA, HI, KY, MD, MI, MT, VA charge sales tax on the full car price, ignoring trade-ins.
→ Workaround: Sell your car privately instead of trading it in.


8. How do I lower my total loan cost?

  • Increase down payment (even $1,000 helps).
  • Choose a shorter term (e.g., 48 vs. 72 months).
  • Improve credit score to qualify for lower rates.

9. Does the calculator account for early payoff?

✅ Yes! The amortization schedule shows how much you’d save by paying extra.
→ Example: Paying $50 extra/month could cut months off your loan.


10. Can I use it for used cars or refinancing?

✔ Yes! Just input:

  • Used car price instead of new.
  • Current loan details for refinancing calculations.

11. How do I change currency or language?

  • Click the language/currency dropdown (top-right).
  • Supports 10+ currencies (USD, EUR, JPY, etc.) and 9 languages.

12. Why is my interest higher than expected?

  • Check if you entered APR (annual rate), not monthly.
  • Loans with longer terms accrue more interest.

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