How to use this auto loan calculator
- Enter the vehicle price. Use the negotiated price before taxes and fees, not the sticker price if you have a better deal.
- Add your down payment and APR. If you have a pre-approval from a bank or credit union, use that rate. Otherwise, try a few rates to see how much your credit affects the payment.
- Pick a loan term. Shorter terms mean higher payments but much less interest.
- Add a trade-in, if you have one. Enter what the dealer will give you and anything you still owe on it.
- Set taxes and fees. Use your state and local sales tax rate, plus title, registration, and dealer documentation fees.
Results update as you type. Use Copy link to save or share a scenario: the numbers are stored in the link itself, and nothing you enter is sent to us.
What makes up the total cost of a car loan
Your monthly payment is only part of the story. The amount financed is the price, minus your down payment and trade-in, plus anything you still owe on the trade-in, plus taxes and fees if you roll them into the loan. Interest is what the lender charges for that money over the term. Thetotal cost adds it all up: every payment, the cash you pay at signing, and the value of the trade-in you hand over.
Three ways to lower what you pay
- Get pre-approved first. A rate from your bank or credit union gives you leverage, and the dealer may beat it.
- Choose the shortest term you can comfortably afford. On a $30,000 loan at 7%, a 48-month term costs about $2,300 less in interest than a 72-month term.
- Put more down. Every dollar you don't borrow is a dollar you don't pay interest on, and it lowers the risk of owing more than the car is worth.
Not sure what price to shop for? Start with the Car Affordability Calculator. Already have a loan? See if you could save with the Auto Refinance Calculator.
Frequently asked questions
How is a monthly car payment calculated?
Lenders use a standard amortization formula: payment = P × r ÷ (1 − (1 + r)^−n), where P is the amount financed, r is the monthly interest rate (APR ÷ 12), and n is the number of months. Early payments go mostly to interest; later payments go mostly to principal.
What is a good APR for a car loan?
It depends mostly on your credit score, whether the car is new or used, and the loan length. Borrowers with excellent credit usually get the lowest rates, and used-car loans typically cost more than new-car loans. Compare quotes from a bank or credit union before you visit the dealer so you have a rate to beat.
Is a longer loan term a bad idea?
A 72- or 84-month loan lowers the monthly payment but usually raises total interest, and you are more likely to owe more than the car is worth for a longer time. Try the same loan at 48, 60, and 72 months above to see the trade-off.
Does my trade-in reduce sales tax?
In most US states, sales tax is charged on the price minus your trade-in value, which can save hundreds of dollars. A few states tax the full price. Use the "Trade-in reduces taxable price" option to match your state.
What happens if I owe more on my trade-in than it is worth?
That difference is called negative equity. Dealers usually add it to your new loan, so you pay interest on it. Enter the amount you still owe in the "Owed on trade-in" field to see the effect.
Last reviewed November 8, 2026. Estimates only; your lender's figures may differ.