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Auto Loan Calculator

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The negotiated purchase price of the vehicle.
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The amount of money you pay upfront when buying a home.
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The percentage of the loan charged as interest.
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The time period over which you will repay the loan.
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An additional amount paid each month to reduce the principal faster.
Monthly Payment:$580.18
Total Vehicle Cost: $37,810.51
Amount Financed
Interest

Understanding Auto Loans

An auto loan lets you spread the cost of a vehicle over a set term, typically 3 to 7 years, with fixed monthly payments covering both principal and interest. The amount you finance is the vehicle price minus your down payment and trade-in value, plus sales tax and title and registration fees when they are rolled into the loan. Trading in your current vehicle helps twice: it reduces the amount you borrow, and in most states you only pay sales tax on the price minus your trade-in. Because cars depreciate quickly, paying your loan off early is especially valuable — even a small recurring extra payment reduces your principal faster, saves interest, and helps you avoid owing more than the car is worth.

Term Definitions

Vehicle Price

This is the agreed-upon price of the car, truck, or SUV before taxes, fees, and any trade-in or down payment are applied. For new cars this is the negotiated price rather than the sticker (MSRP), and for used cars it is the final sale price. It is the starting point for calculating how much you will need to finance.

Down Payment

A down payment is the amount of money you pay upfront when purchasing a home, and it is not part of the loan. It can be expressed as a fixed dollar amount or a percentage of the purchase price. A larger down payment can result in a lower interest rate and monthly payment, and may help you avoid private mortgage insurance (PMI).

Interest Rate

The interest rate is the percentage of the principal that a lender charges for borrowing money. It is typically expressed as an annual rate. A lower interest rate will result in lower monthly payments and less total interest paid over the life of the loan.

Loan Term (Years)

The loan term is the duration over which the loan is scheduled to be repaid. Common loan terms are 15 or 30 years for mortgages, or 3-7 years for personal or auto loans. A longer term usually means lower monthly payments but more total interest paid.

Extra Monthly Payment

Making an extra payment each month, in addition to your required monthly payment, can significantly reduce your loan's total cost. This extra amount is applied directly to the principal, which helps you pay off the loan sooner and save on interest.

Trade-In Value

The trade-in value is what the dealer offers you for your existing vehicle, which is applied toward the purchase of the new one. In most states, sales tax is only charged on the vehicle price minus your trade-in value, so a trade-in can lower both the amount you finance and the tax you pay. A few states tax the full purchase price regardless of trade-in.

Sales Tax Rate (%)

Vehicle sales tax is charged by your state and often your county or city, and typically ranges from 0% to about 10% depending on where you register the vehicle. This calculator applies the rate to the vehicle price minus your trade-in value, which is how most states calculate it, and assumes the tax is rolled into your loan.

Title & Registration Fees

These are the fees your state charges to issue a title in your name and register the vehicle, and may also include documentation fees charged by the dealer. They typically range from a small flat fee to several hundred dollars depending on your state. This calculator assumes these fees are rolled into the loan rather than paid upfront.