🚗 Auto Loan Calculator
Estimate your monthly car payment in seconds
How This Calculator Works
This tool estimates your monthly car payment based on the vehicle price, your down payment, the loan term, and the interest rate offered by your lender. It also factors in sales tax if you choose to include it.
The calculator uses the standard amortized loan formula, the same method banks and dealerships use to calculate car loan payments:
- Loan Amount = Vehicle Price + Sales Tax − Down Payment
- Monthly Payment is calculated using the loan amount, the monthly interest rate (annual rate ÷ 12), and the number of months in your term
- Total Interest = Total of all payments − Loan Amount
A larger down payment or shorter loan term will reduce the total interest you pay over time, while a lower rate keeps your monthly payment more affordable. Use this calculator to compare different scenarios before you visit a dealership or apply for financing.
How to Use This Auto Loan Calculator
This auto loan calculator helps you estimate your monthly car payment based on the vehicle price, down payment, interest rate, and loan term. Use it to compare offers and see how different down payments or loan lengths affect what you pay each month.
Example: $30,000 Car Loan Over 5 Years
If you finance a $30,000 vehicle with a $5,000 down payment, a 6% interest rate, and a 5-year loan term, your estimated monthly payment would be around $483, with total interest paid of approximately $3,975 over the life of the loan.
Auto Loan Calculator with Trade-In Value
If you’re trading in your current vehicle, its value can be applied toward your down payment, reducing the amount you need to finance. For example, a $4,000 trade-in on a $30,000 car works the same way as an extra $4,000 down payment, lowering both your monthly payment and total interest paid.
Frequently Asked Questions
How much should I put down on a car?
A common recommendation is 10-20% of the vehicle’s price. A larger down payment lowers your monthly payment and reduces total interest paid over the loan.
Does a longer loan term save me money?
A longer term lowers your monthly payment, but you’ll typically pay more in total interest over the life of the loan compared to a shorter term.
Is my trade-in value taxed?
In many states, trade-in value reduces the taxable amount of your new purchase, which can lower your total cost. Rules vary by state, so check your local tax regulations.