Auto Loan Calculator: Car Payment, Interest and Total Cost

1. Enter the vehicle price, your down payment and any trade-in value. The tool subtracts the down payment and trade-in from the price.
2. Add your own sales tax rate, any other fees, the APR and the term in months. Choose whether tax applies to the full price or to the price minus your trade-in.
3. Read your monthly car payment and the totals, then scroll the yearly summary to see how interest falls over time.

What each result tells you:

An auto loan calculator turns the details of a car purchase into a monthly payment and a total cost. You enter the price, your down payment and trade-in, the sales tax rate and fees, the APR and the term, and it works out the amount financed and the fixed monthly payment using the standard amortization formula that lenders use.

It helps you set a realistic budget, compare offers from a dealer, bank or credit union, and see how a bigger down payment or a shorter term changes what you pay. It estimates a fixed-rate loan with equal monthly payments. It does not set your rate, and it is not a loan offer. To compare the true cost of competing offers, use the APR calculator.

A car loan is repaid in equal monthly payments. Each payment covers that month's interest first, and the rest reduces the balance, so early payments are mostly interest and later ones mostly principal.

1. Amount financed = price - down payment - trade-in + sales tax + fees.
2. Interest for the month = current balance x r.
3. Principal for the month = payment - interest. The new balance is the old balance minus principal.
4. The last payment is trimmed so the balance lands at exactly zero.

If the APR is zero, as in some manufacturer promotions, the payment is simply the amount financed divided by the number of months.

Suppose a car is priced at 30,000, you put 5,000 down, have no trade-in, and pay no sales tax or fees. The amount financed is 25,000. At a 7% APR over 60 months:

Meaning: you repay about 495 a month and pay roughly 4,702 in interest over five years. Stretching the same loan to 72 months lowers the monthly payment but raises the total interest, because you borrow for longer. These figures use the APR and term you enter; they are not a quoted rate.

A handful of inputs drive almost everything in a car loan.

APR

A higher APR raises both the monthly payment and the total interest. Your rate depends on your credit, the lender and the loan term, so it pays to get quotes from more than one lender. Enter each offer's APR to compare.

Loan Term

A longer term lowers the monthly payment but increases the total interest, because the balance is spread over more months. A shorter term does the opposite.

Down Payment and Trade-In

Both reduce the amount financed, which cuts the payment and the interest. A larger down payment also lowers the risk of owing more than the car is worth.

Sales Tax and Fees

Tax and fees that are rolled into the loan increase the amount financed, so you pay interest on them too. Paying fees up front instead can lower the total cost.

The term is the biggest trade-off between an affordable payment and a low total cost. Long terms of 72 or 84 months keep the monthly figure down but can leave you owing more than the car is worth for years.

Pick the shortest term whose payment still fits your budget. Check how the payment sits against your income with the debt-to-income ratio calculator.

Before You Shop

Set a price and term that keep the payment comfortable, so you walk into the dealer with a number in mind rather than one chosen for you.

Comparing Offers

A dealer, bank and credit union can quote very different APRs on the same car. Enter each offer to compare the monthly payment and total interest, not just the headline rate.

At Tax Time

If you use the vehicle for business, interest may be partly deductible. See the car loan interest deduction calculator to estimate the business-use portion; whether you can deduct it depends on your own return.

1. Shopping by Monthly Payment Alone

A low payment often hides a long term and high total interest. Always compare the total cost, not just the monthly figure.

2. Rolling Everything into the Loan

Financing tax, fees and add-ons raises the amount financed, so you pay interest on them. Paying some up front lowers the total cost.

3. Ignoring APR in Favor of the Rate

APR reflects some fees, so it compares offers more fairly than the interest rate alone. Consolidating other debts first can also help; see the debt consolidation calculator.

4. Taking the Longest Term Offered

An 84-month loan keeps the payment low but can leave you underwater for years and cost far more interest.

5. Skipping the Down Payment

With little or nothing down, you can owe more than the car is worth from day one. Even a modest down payment helps.

The math matches the standard fixed-rate amortization formula, so differences from a lender usually come from rounding or from costs this tool leaves out.

It uses the amortization formula Payment = P x r / (1 - (1 + r)^-n), where P is the amount financed, r is the APR divided by 12 and n is the number of months. The payment stays fixed and clears the balance by the end of the term.

It is the vehicle price minus your down payment and trade-in, plus any sales tax and fees you roll into the loan. That figure, not the sticker price, is what you pay interest on.

Yes. A trade-in reduces the amount financed the same way a down payment does, so it lowers both the monthly payment and the total interest. In some states it can also lower the sales tax base.

Long terms keep the monthly payment low but cost much more interest and raise the risk of owing more than the car is worth. The calculator flags terms of 72 months and longer so you can weigh the trade-off.

Enter the APR from your own loan offer or pre-approval. The calculator does not assume a rate; the example placeholder is only a starting point, not a current or quoted rate.

Yes, if you enter them. You set your own sales tax rate and fee amount, and choose whether tax applies to the full price or the price minus your trade-in. The tool bakes in no state or city rate.

The payment becomes the amount financed divided by the number of months, and total interest is zero. The tool handles this case directly, which is useful for manufacturer promotions.

Choose a shorter term, put more money down, secure a lower APR, or avoid rolling fees into the loan. Each lowers the total interest, though a shorter term raises the monthly payment.

Yes. The amortization math is the same. For a refinance, enter your current payoff balance as the price with no down payment or trade-in, and use your new APR and term.

No. The calculation runs in your browser and nothing you enter is sent to our servers. Anything you choose to Save stays in this browser only.

• Amortization Schedule (Corporate Finance Institute, standard amortization formula).
• Annual Percentage Rate (APR) (US SEC Investor.gov).
• Amortization explained (Corporate Finance Institute).