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loanbeginner7 min

Auto Loan Calculator

Calculate your monthly car payment with our free auto loan calculator. Estimate payments based on loan amount, interest rate, and term length.

Enter Your Details
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Monthly Payment

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Full Results

Total Interest

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Total Cost of Car

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Loan Amount

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Total Sales Tax

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Total Upfront Costs

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Total Cost Breakdown

What is Auto Loan Calculator?

An auto loan calculator helps you estimate your monthly car payments and total loan cost so you can make an informed decision when financing a vehicle.

How It Works

Enter the car price, down payment, trade-in value, interest rate, and term. The calculator factors in sales tax and shows your monthly payment, total interest, and overall cost.

The Formula

M = P × [r(1+r)^n] / [(1+r)^n - 1]

M = Monthly payment, P = Loan principal (car price + tax - down payment - trade-in), r = Monthly interest rate, n = Number of months

Examples

Example: $35,000 Car with 60-month loan

$35,000 car, $5,000 down, 6.5% APR, 60 months, 7% tax

After $5,000 down and $2,450 in taxes, you finance $32,450 at 6.5% for 60 months. Your monthly payment is $635. You pay $5,461 in total interest over the life of the loan.

Pros & Cons

Pros

  • ✓Know your payment before visiting a dealer
  • ✓Compare financing offers
  • ✓Factor in all costs including tax
  • ✓Avoid being sold on payment, not price

Cons

  • ✗Assumes fixed interest rate
  • ✗Doesn't include insurance costs
  • ✗Doesn't factor in depreciation
  • ✗Tax rates vary by location

Common Mistakes to Avoid

  • !Focusing only on monthly payment
  • !Negotiating payment instead of price
  • !Taking too long of a term
  • !Not checking credit score first

Expert Tips

  • ★Get pre-approved before visiting the dealer
  • ★Negotiate the total price, not the payment
  • ★Keep terms at 60 months or less
  • ★Put as much down as you can afford

Frequently Asked Questions

How much car can I afford?
The 20/4/10 rule is a good guideline: put down at least 20%, finance for no more than 4 years, and keep total car costs (payment, insurance, gas, maintenance) under 10% of your gross monthly income.
Should I get a 60-month or 72-month loan?
Shorter terms have higher payments but less total interest. A 72-month loan might lower your payment but cost thousands more in interest. Only stretch the term if you're sure you won't end up upside-down on the loan.
How does my credit score affect my car loan rate?
Your credit score significantly impacts your auto loan rate. A score of 720+ might get 4-6%, while 620-680 might see 8-12%. Check your credit before shopping and consider improving it first.
What does 'upside-down' on a car loan mean?
Being upside-down (or underwater) means you owe more than the car is worth. This happens with long terms, high rates, or when the car depreciates faster than you pay down the loan. It can make selling or trading difficult.

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