Auto Loan Calculator
Car loan with trade-in, down payment, and sales tax options.
Monthly payment
$652
Amortization scheduleShow by year ▾Hide ▴
| Period | Interest | Principal | Balance |
|---|---|---|---|
| Year 1 | $2,251 | $5,572 | $26,965 |
| Year 2 | $1,819 | $6,005 | $20,960 |
| Year 3 | $1,353 | $6,471 | $14,489 |
| Year 4 | $850 | $6,974 | $7,515 |
| Year 5 | $309 | $7,515 | $0 |
An auto loan calculator estimates your monthly car payment and the total cost of financing, accounting for the down payment, a trade-in, and sales tax rolled into the loan.
Enter the vehicle price, your down payment and trade-in value, the APR, and the term. The tool figures the amount actually financed and returns the monthly payment plus the total interest over the life of the loan.
Car loans are where long terms quietly get expensive. Stretching to 72 or 84 months lowers the payment but raises total interest and keeps you owing more than the car is worth for longer.
How this calculator works
The amount financed is the vehicle price plus taxable fees and sales tax, minus your down payment and trade-in value (a trade-in with a loan still owed adds its payoff back in). That principal runs through the standard amortization formula M = P x r x (1 + r)^n / ((1 + r)^n - 1), where r is the monthly rate (APR / 12) and n is the number of months. Sales tax is typically charged on the price after the trade-in credit in most states, which is one reason a trade-in can beat a private sale. Total interest is the sum of monthly interest charges; a longer term lowers the payment but increases that total.
What affects the number
- APR depends heavily on your credit tier and whether the loan is for a new or used car; used-car rates are usually higher.
- Term length is the biggest driver of total interest; 72- and 84-month loans cost far more than 48- or 60-month loans.
- Down payment and trade-in reduce the financed amount and help you avoid being underwater on the loan.
- Sales tax, title, registration, and dealer fees add to the amount financed unless you pay them upfront.
- A trade-in credit often reduces the taxable price, lowering the sales tax you owe compared with selling privately.
- Negative equity from a previous loan rolled into the new one increases the balance and the risk of owing more than the car is worth.
Frequently asked questions
How does a trade-in affect the loan?
A trade-in lowers the amount you need to finance, and in most states it also reduces the price on which sales tax is calculated. If you still owe money on the trade-in, that payoff amount is added back to the new loan, which can create negative equity.
Is a longer car loan a bad idea?
A 72- or 84-month loan lowers the monthly payment but increases total interest and keeps you underwater, owing more than the car is worth, for much of the term. If you need a long term just to afford the payment, the car may be more than the budget allows.
Is sales tax included in the payment?
It can be. Many buyers roll sales tax, title, and registration into the loan, which increases the financed amount and the monthly payment. Paying those costs upfront instead keeps the loan smaller and reduces total interest.
What is negative equity?
Negative equity, or being upside down, means you owe more on the loan than the car is currently worth. It is common early in a long loan and when negative equity from a prior car is rolled into the new one. A larger down payment and a shorter term reduce the risk.
This calculator provides general estimates for educational purposes only and is not financial, medical, legal, or tax advice. Your actual results depend on your specific situation and current rates.