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Auto Loan Calculator

What to Work Out
First Payment

Your schedule and payoff date count from this month.

Total Vehicle Cost: $37,810.47
Amount Financed: $29,300.00
Interest: $5,510.47
Down payment: $3,000.00
Monthly Payment$580.18
Payoff DateOctober 2031
Due at Signing$3,000.00
Amount Financed$29,300.00
Sales Tax$1,800.00
Total Interest$5,510.47
Total of Payments$34,810.47
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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.

How this calculator works

Works out the monthly payment, total interest and total cost of a car loan with your trade-in, rebate, sales tax and fees, or the price a monthly payment can buy.

How it calculates

  1. Taxable price = vehicle price − trade-in value (or the full price, if your state taxes it). A manufacturer's rebate comes off first only if you say your state taxes the price after the rebate. Sales tax = taxable price × your tax rate.
  2. Amount financed = price − rebate − down payment − trade-in value + what you still owe on the trade-in + sales tax + title and registration fees. Owing more than the trade-in is worth puts that negative equity into the new loan. Paying tax and fees upfront leaves them out of the loan and adds them to what is due at signing, with the down payment.
  3. The payment uses the standard amortization formula at the APR ÷ 12 over the term in months, and the schedule rounds each payment and each month's interest to the cent. Total of payments = amount financed + total interest.
  4. Price for a payment: the loan a payment repays is payment × (1 − (1 + r)^−n) ÷ r. The amount financed rises in step with the price, so the price follows exactly, rounded down to the cent so the payment stays within your budget.
  5. 0% APR or the rebate: works out the same car twice, once at the dealer's rate and term without the rebate and once with the rebate at your rate and term, and compares the total cost of each.
  6. Extra payments go straight to principal, month by month, to show the earlier payoff and the interest saved.

What it assumes

  • Sales tax and fees are added to the loan unless you choose to pay them upfront.
  • Sales tax is charged on the price before a manufacturer's rebate unless you turn that off. That is the rule in many states, including California and Washington, while Minnesota takes the rebate off first; check your state's rule.
  • A fixed rate and on-time payments. Dealer add-ons such as extended warranties or GAP coverage are left out unless you add them to the price.
  • Total cost counts the price after any rebate, tax, fees, negative equity paid through the loan and interest.

Sources

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How we build and check all our calculators

Frequently Asked Questions

How do a trade-in and a rebate change the sales tax on a car?

Your state, and often your county or city, charges a percentage of the taxable price, typically 0% to about 10%. Most states tax the vehicle price minus your trade-in, so a trade-in helps twice: a $10,000 trade-in at a 7% tax rate saves $700 in tax on top of the $10,000 you never borrow. A few, including California and Virginia, tax the full price; turn off "Trade-in lowers the taxable price" if yours is one. A manufacturer's rebate works differently. Many states, including California and Washington, tax the price before the rebate, while Minnesota takes it off first, so set the rebate option to match your state.

What loan term should I choose for a car?

Typical auto loans run 3 to 7 years. A longer term lowers the monthly payment but costs more total interest, and it keeps you owing money on an asset that is depreciating the whole time — the classic recipe for owing more than the car is worth. A useful rule of thumb: if you need more than 60 months to afford the payment, consider a cheaper car rather than a longer loan.

What does it mean to be "upside down" on a car loan, and how do I avoid it?

You are upside down (or have negative equity) when your loan balance exceeds the car's market value — a real problem if the car is totaled or you need to sell. New cars lose value fastest in their first years, so long terms and small down payments make it likely. A meaningful down payment, a shorter term, and extra principal payments all keep your balance falling faster than the car depreciates.

Is it worth paying extra on a car loan?

Usually, yes. Extra payments go directly to principal, which shortens the loan, trims total interest, and gets you out of negative-equity territory sooner. The interest savings are smaller than on a mortgage because the balance and term are smaller, but the equity benefit is immediate. Just confirm your lender applies extra amounts to principal and does not charge a prepayment penalty — most auto lenders do not.

Should I pay taxes and fees upfront or roll them into the loan?

Rolling sales tax and title fees into the loan means you pay interest on them for the whole term, and it deepens any negative equity since fees add nothing to the car's value. Paying them at signing keeps your loan smaller and cheaper. On a $30,000 car with $3,000 down at 7% for 60 months, paying the $2,300 of tax and fees upfront lowers the payment from $580.18 to $534.63 and saves $432.50 in interest. If you have the cash beyond your down payment and emergency fund, turn on "Pay taxes and fees upfront" and see the difference for your deal.

Should I take 0% financing or the cash rebate?

Compare the total cost, not just the payment. On a $30,000 car with $3,000 down, 6% sales tax and $500 of fees, 0% APR for 60 months costs $32,300 in all, while a $3,000 rebate financed at 7% for 60 months costs $34,246.34, so the 0% offer saves $1,946.34. A bigger rebate, or a lower rate from your own bank or credit union, can make the rebate the better deal. Turn on "0% APR or the rebate?" to compare the offer in front of you.

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.

Payment

The regular payment you can make, on the payment schedule you chose. Solving for the loan amount, it is the payment you can afford, and the calculator works out what it repays over the term. Solving for the term, it is the payment you will make, and it has to be more than the first month's interest, or the balance never goes down.

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, including California and Virginia, tax the full purchase price regardless of trade-in; turn off "Trade-in lowers the taxable price" if yours is one of them.

Amount Owed on Trade-In

If you still have a loan on your trade-in, the dealer pays it off as part of the deal. When you owe more than the trade-in is worth, the difference (negative equity) is added to your new loan, so you pay interest on it too. When you owe less, only the difference counts toward the new car. Your lender can give you a payoff amount.

Manufacturer Rebate

A manufacturer's rebate (or cash back) is money the carmaker puts toward your purchase. Taken at signing, it lowers what you pay for the car. Many states, including California and Washington, still charge sales tax on the price before the rebate; some, such as Minnesota, take the rebate off first. This calculator taxes the price before the rebate unless you turn that off.

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 (or to the full price, if you turn that off). A manufacturer's rebate doesn't lower the taxed price unless you say your state takes it off first. The tax is added to your loan unless you choose to pay taxes and fees upfront.

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 adds these fees to the loan unless you choose to pay taxes and fees upfront.

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