Auto Loan Calculator
Find your monthly car payment and see how much the loan really costs once sales tax, fees and interest are added.
How this auto loan calculator works
The calculator first adds sales tax and dealer or registration fees to the vehicle price. Most U.S. states charge sales tax only on the difference between the new car's price and your trade-in, so that is how tax is calculated here. Your down payment and trade-in are then subtracted to get the amount you finance. The monthly payment uses the same amortization formula banks use:
Payment = Loan × r ÷ [1 − (1 + r)−n]
with r as the monthly rate (APR ÷ 12) and n as the number of months. A few states tax the full price even with a trade-in, so check your state's rules if the difference matters to you.
Is a longer loan a good idea?
Stretching a loan to 72 or 84 months lowers the payment, but you pay interest for longer and cars lose value quickly. That raises the chance of being "upside down" — owing more than the car is worth. Switch the term in the calculator from 60 to 84 months and compare the total interest to see the trade-off for yourself.
Tips to get a better car loan
- Get pre-approved by a bank or credit union before visiting the dealer, so you have a rate to compare.
- Negotiate the price first, then talk about financing. A low monthly payment can hide a high price.
- Check your credit score. Borrowers with strong credit often get rates several points lower.
- Watch for add-ons like extended warranties or gap insurance rolled into the loan — they add interest too.
Frequently asked questions
What is a good APR for a car loan?
It depends on your credit score, whether the car is new or used, and current market rates. Used-car loans and borrowers with lower scores usually pay more. Compare offers from at least three lenders.
How much should I put down on a car?
A common target is about 20% for a new car and 10% for a used car. A bigger down payment lowers your payment and protects you from owing more than the car is worth.
Does the calculator include insurance?
No. Car insurance, fuel and maintenance are separate monthly costs. Add them to your budget when deciding what you can afford.
Last reviewed November 14, 2026.
