Auto Loan Calculator

Enter the negotiated vehicle price, then subtract any down payment and trade-in credit. Add the sales tax rate that applies to the scenario, followed by the loan interest rate and term.

The calculator estimates the amount financed first, then applies the standard fixed-payment loan formula. Compare both the monthly payment and total interest. A longer term can reduce the payment while increasing the total borrowing cost.

This model adds sales tax to the vehicle price before subtracting the entered down payment and trade-in credit. Real transactions can tax trade-ins differently by state, so compare the modeled amount financed with the dealer worksheet before relying on the estimate.

APR can include costs beyond the note rate in some offers. This calculator uses the entered rate as the rate applied to the loan balance, so compare the result with the lender's disclosure before signing.

Maya chooses a $30,000 car, pays $5,000 upfront, and has no trade-in. At a 5% sales tax rate, the tax is $1,500, so the amount financed is $26,500.

With a 6% annual interest rate, a 60-month loan costs about $512.32 per month. Extending the same balance to 72 months reduces the payment to about $439.18. The longer term costs more interest overall, even though the monthly payment is smaller.

A lower monthly car payment does not necessarily mean a cheaper auto loan. Extending the term spreads the balance across more payments, which can make the monthly amount easier to fit into a budget while keeping the debt outstanding longer.

When comparing auto financing, look at the estimated monthly payment, amount financed, total interest, and total of payments together. If two offers finance the same vehicle, the one with the lower payment can still cost more overall when the term is longer or the rate is higher.

The amount financed is the balance that actually goes into the loan calculation. In this model, it starts with the vehicle price, adds the entered sales tax, and then subtracts the down payment and trade-in credit.

A real buyer's order can also include registration, documentation fees, service contracts, warranties, accessories, negative equity from a trade-in, or rebates. If those items are financed, the lender's amount financed can differ from the simplified amount shown here.

The interest rate controls how quickly financing charges accrue on the outstanding balance, while the term controls how long that balance remains in repayment. A shorter term usually raises the required payment but reduces the number of months in which interest can accumulate.

To compare scenarios cleanly, hold the vehicle price and down payment constant, then change only the APR or term. That makes it easier to see whether a more comfortable payment is being purchased with a higher lifetime borrowing cost.

Sales-tax treatment varies by state and transaction. Some jurisdictions treat trade-in credit differently, and dealer fees or optional products may be taxable or financed. This calculator therefore uses the rate and dollar amounts you enter rather than trying to infer a complete dealership worksheet.

Compare the modeled amount financed, rate, and term with the lender or dealer disclosure. The general Loan Payment Calculator accepts a disclosed loan amount directly; this auto-loan tool builds a simplified amount financed from the purchase inputs.