Auto Loan Calculator
Calculate your auto loan payment, total interest, and total cost. Factor in down payment, trade-in, sales tax, and interest rate.
How This Calculator Works
Calculation methodology and assumptions
Auto loan payments use standard amortization. The loan amount is vehicle price + sales tax - down payment - trade-in value. Monthly payment = P × [r(1+r)^n] / [(1+r)^n - 1], where P = principal, r = monthly rate, n = number of payments.
How to Use This Auto Calculator
- 1
Enter the vehicle price
Input the purchase price or MSRP of the vehicle. Include any add-ons, destination charges, or dealer fees as applicable.
- 2
Set financing terms
Enter your expected interest rate, down payment or trade-in value, and loan term (36–84 months). Shorter terms mean higher payments but significantly less total interest.
- 3
Review sales tax impact
The calculator applies Auto Loan's sales tax to show the true total cost. Some states tax the full price, others tax after trade-in deduction.
- 4
Analyze total cost of ownership
Look beyond the monthly payment. Total interest paid, sales tax amount, and effective price after trade-in reveal the real cost of the vehicle purchase.
Example Calculation
What does financing a $35,000 vehicle look like in Auto Loan?
On a $35,000 vehicle with $5,000 down and a 6.5% APR for 60 months: Your loan amount is $30,000, resulting in a monthly payment of approximately $587. Total interest over the loan: $5,220. Add Auto Loan sales tax and your total cost could exceed $42,000.
Result: Choosing a 48-month term instead of 60 would increase the payment to $711/month but save $1,400+ in interest. A 72-month term drops the payment to $507 but adds $1,900 in extra interest. Always calculate the total cost, not just the monthly payment.
What Affects Your Results
Interest Rate (APR)
Your credit score drives the rate more than anything else. Excellent credit (750+) might get 4-5%; fair credit (650) could mean 8-10%+. Even 1% difference on a $30K loan = $900+ over 60 months.
Loan Term
Longer terms = lower payments but more total interest and longer periods of being underwater. The sweet spot is usually 48-60 months for budget/total-cost balance.
Sales Tax Rate
Auto Loan and local sales tax adds significantly to vehicle cost. Five states have no sales tax on vehicles; others charge up to 10%+.
Down Payment & Trade-In
A larger down payment reduces your loan amount, monthly payment, and total interest. It also helps avoid being underwater on the loan.
Tips for Auto Loan Residents
- Get pre-approved from your bank or credit union before visiting the dealer. This gives you negotiating leverage and a rate baseline to compare against dealer financing.
- Factor in Auto Loan's sales tax when budgeting. On a $35,000 vehicle, sales tax alone could be $1,500–$3,000+ depending on your state and local rates.
- Avoid 72+ month loans if possible. While the monthly payment is lower, you'll likely be "underwater" (owing more than the car is worth) for years and pay thousands extra in interest.
- Trade-in timing matters. In some states, the trade-in value reduces the amount subject to sales tax — effectively saving you tax on that amount.
- Don't forget insurance costs. High-value vehicles, sports cars, and luxury models carry significantly higher insurance premiums. Get an insurance quote before committing.
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StateCalc Team
Editorial Team
The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.
Our editorial standardsFrequently Asked Questions
How much should I put down on a car?
Financial experts recommend putting at least 20% down on a new car and 10% on a used car. A larger down payment reduces your loan amount, lowers monthly payments, and may help you qualify for better interest rates.
What is a good interest rate for a car loan?
As of 2025-2026, good auto loan rates range from 5-7% for new cars and 7-10% for used cars with good credit. Rates under 5% are excellent. Rates above 10% are typically for borrowers with fair or poor credit.
Should I choose a 60 or 72 month car loan?
A 60-month (5-year) loan has higher monthly payments but less total interest. A 72-month (6-year) loan has lower payments but you pay significantly more interest and risk being underwater. Choose the shortest term you can afford.
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