Auto Loan & Car Payment Calculator

An auto loan payment is calculated using the same amortization formula as a mortgage. Your monthly payment depends on the loan amount (after down payment, trade-in, taxes, and fees), the interest rate, and the loan term.

How the loan amount is determined: Start with the vehicle price, subtract your down payment and net trade-in value, then add sales tax and any dealer fees. Some buyers roll fees into the loan; others pay them upfront — this calculator lets you toggle that choice.

The cost of longer terms: A 72- or 84-month loan lowers your monthly payment but dramatically increases total interest. A $30,000 loan at 6.5% costs $4,900 in interest over 48 months versus $10,600 over 84 months — more than double.

Trade-in equity vs. negative equity: If you owe more on your current car than it's worth (negative equity), that difference gets added to your new loan. This is one of the most common ways buyers end up "underwater" on a car loan.

APR vs. monthly payment: Dealers sometimes stretch the term to show a lower monthly payment while charging a higher APR. Always compare the total cost of the loan, not just the monthly number.

The power of extra payments: Even $50/month extra on a 60-month auto loan can save hundreds in interest and shorten the loan by several months. Unlike some mortgages, auto loans almost never have prepayment penalties.

Sales tax variations: Most states tax the full vehicle price, but some only tax the difference after trade-in. Check your state's rules — this calculator applies tax to the price after trade-in for the most common scenario.