Auto Loan Calculator
This car loan calculator — also called a car payment calculator — shows your real monthly car payment in seconds, with down payment, trade-in, sales tax, interest rate and loan term all factored in.
Estimate your car payment
Enter the numbers from your deal.
Advanced options — rebate, owed on trade-in, fees, tax settings, payment frequency
The rebate, the amount owed on your trade-in, title fees, the tax settings and the payment frequency are already included in the result with their default values — open Advanced options to change them.
- The deal is assembled first — price, minus trade-in, plus sales tax, minus down payment — then that amount is amortized: a $30,000 car with a $2,000 trade-in, 7% tax and $3,000 down at 6% for 60 months means financing $26,960 and paying $521.21 a month.
- The 15% rule: keep the car payment under 15% of your monthly take-home pay — on $5,000 take-home, that is a $750 maximum.
- Working backwards works too: reversing a $521.21 payment at the same terms returns a max vehicle price of $29,999.89 — the $30,000 car it came from.
Where each payment goes
Your payment stays the same every month — but the split between principal and interest shifts as your balance shrinks.
| Year | Interest | Principal | Balance |
|---|
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The complete guide to auto loans
Everything about financing a car — how the payment is built from the deal, how much car you can afford, and the traps that make a cheap payment expensive.
🔄Car loan calculator vs. car payment calculator — same math
Shoppers search for this tool under half a dozen names, but every version runs the same amortization formula. A car loan calculator starts from the loan itself — the amount financed, the APR and the term — while a car payment calculator starts from the car and works toward the monthly payment. The destination is identical: one fixed monthly payment, a total interest figure and the true cost of the deal. This page does both — enter the deal in Price → Payment mode, or start from a payment you can afford in Payment → Max price mode.
The other names you will see all mean the same thing. Dealers and lenders call it an auto payment calculator; banks list it as a car finance calculator or an auto finance calculator; older listings say automobile loan calculator. Whatever the label, the inputs never change — price, down payment, trade-in, sales tax, APR and term — and neither does the math. If a site asks for those same six numbers, it is this calculator wearing a different name.
That is also why honest calculators agree with each other: any tool using the standard formula returns the same payment for the same deal — like the $521.21 a month on the $30,000 example that runs through this guide.
⚙️How an auto loan actually works
An auto loan has two halves: the deal (what you finance) and the loan (what you pay). First the deal is assembled — vehicle price, minus trade-in, plus sales tax, minus down payment — and then that financed amount is amortized: every monthly payment is identical, computed with the standard loan formula, the same one lenders use:
loan = (price − trade-in) × (1 + tax ÷ 100) − down payment
M = loan × r(1+r)n ÷ ((1+r)n − 1), with r = APR ÷ 12 and n = months.
Worked example: $30,000 car, $2,000 trade-in, 7% sales tax, $3,000 down, 6% APR, 60 months. Taxable amount: $28,000 × 7% = $1,960 tax. Loan: $28,000 + $1,960 − $3,000 = $26,960.00. Monthly: $521.21. Total interest: $4,312.74. True cost of the car (down + trade-in + all payments): $36,272.74.
Like any amortizing loan, early payments are mostly interest and later payments mostly principal — the first-payment bar above shows your exact split for month one.
💰How much car can you afford?
Start from the payment, not the price — that is what the Payment → Max price tab above does. It inverts the loan formula: affordable loan = M × ((1+r)n−1) ÷ (r(1+r)n), then backs out tax, down payment and trade-in to the sticker price.
Worked example: you can afford $500/month, with $5,000 down, no trade-in, 7% tax, 6% APR, 60 months. Affordable loan: $25,862.78. Max price: ($25,862.78 + $5,000) ÷ 1.07 = $28,843.72. And reversing our $521.21 example payment returns a price of $29,999.89 — the $30,000 car it came from.
Two rules of thumb keep the answer honest. The 15% rule: keep the car payment under 15% of your monthly take-home pay ($5,000 take-home → $750 max). The stricter 20/4/10 rule: put at least 20% down ($6,000 on a $30,000 car), finance for no more than 4 years, and keep total car costs (payment, insurance, fuel) under 10% of gross income.
Used together, these rules work like a car buying calculator in reverse: instead of asking what a given car costs each month, they start from your income and work back to the most expensive car you should be looking at. On $5,000 a month take-home, the 15% rule caps the payment at $750; the 20% down payment keeps the loan small enough to stay ahead of depreciation; and the 10%-of-gross cap stops insurance and fuel from quietly blowing the budget. If you are working from an annual salary, divide by 12 first — a $72,000 salary is $6,000 a month gross, so the 10% total-cost cap is $600 a month for payment, insurance and fuel combined. Run the Payment → Max price tab with those limits and the sticker price it returns is the ceiling for your search, not a target to stretch toward.
⇆Down payment, trade-in, and negative equity
A down payment is cash subtracted after tax — a trade-in reduces the taxable amount first, so in most states you also pay less sales tax. On the $30,000 example, the $2,000 trade-in saves $2,000 × 7% = $140 in tax on top of reducing the loan. Dollar for dollar, a trade-in usually beats a down payment for that reason.
Negative equity is the reverse: you owe more on your old car than it is worth. If your trade-in is worth $2,000 but you still owe $5,000, you have $3,000 of negative equity: your old loan is paid off in full, so the whole $5,000 payoff joins the new loan and your $2,000 trade-in credit is used up by that payoff instead of coming off the new car. On our example that lifts the loan from $26,960 to $31,960, the payment from $521.21 to $617.88, and total interest from $4,312.74 to $5,112.58. You start the new loan underwater — owing more than the car is worth — which is risky because cars depreciate fastest in year one. If you have negative equity, a larger down payment or a cheaper car is usually wiser than rolling it over.
🧧Taxes, fees, and the out-the-door price
The sticker price is never the final price. Beyond sales tax, dealers add documentation fees ($200–$800), title and registration ($100–$400), and sometimes destination charges on new cars. This calculator has a dedicated fees field: $1,200 in fees rolled into the loan raises it from $26,960 to $28,160; paid upfront instead, they join the upfront payment ($3,000 down + $1,960 tax + $1,200 fees = $6,160 due at signing).
One tax subtlety: the trade-in tax break is state-dependent. California, DC, Hawaii, and Virginia do not reduce the taxable amount for trade-ins — there, tax is charged on the full price ($30,000 × 7% = $2,100 instead of $1,960). Michigan allows the break but caps the credit ($12,000 in 2026), Kentucky allows it with conditions, and Alaska, Delaware, Montana, New Hampshire, and Oregon levy no general sales tax on cars at all. Pick your state in the calculator above and the right treatment is applied for you.
⏱️0% APR vs. cash rebate: do the math
Manufacturers often offer a choice: promotional 0% financing or a cash rebate with a normal rate. The right answer is pure arithmetic. Take the $30,000 car (with $2,000 trade-in, 7% tax, $3,000 down, 60 months):
| Offer | Monthly | Total interest | True cost |
|---|---|---|---|
| 0% APR, no rebate | $449.33 | $0.00 | $31,960.00 |
| $2,500 rebate at 3.9% APR | $446.15 | $2,484.01 | $31,769.01 |
Here the rebate wins by $190.99 — but flip the numbers (a $1,000 rebate, or 6.9% instead of 3.9%) and 0% wins easily. Never take the dealer’s word for which is better; run both through the calculator.
📈Loan term: the payment vs. interest tradeoff
Same $26,960 loan at 6% APR, three terms:
| Term | Monthly | Total interest |
|---|---|---|
| 36 months | $820.18 | $2,566.32 |
| 60 months | $521.21 | $4,312.74 |
| 84 months | $393.85 | $6,123.12 |
Stretching from 3 to 7 years cuts the payment by more than half but more than doubles the interest. Worse, long terms keep you underwater longer: the car depreciates while the balance falls slowly, so a totaled or traded-in car can leave you owing thousands. Four to five years is the sweet spot for most buyers — affordable payments without paying for the car twice.
%Interest: why the rate matters more than the payment
Interest on a car loan is charged on a declining balance: each month you pay interest only on what you still owe, at one-twelfth of your APR. On the $26,960 example loan at 6%, the first payment sends $134.80 to interest and $386.41 to principal; by the final year almost the whole payment is principal, because the balance — and so the interest charged on it — has shrunk. That split is exactly what a car interest calculator shows, and it is why two loans with similar payments can cost very different amounts.
Monthly car payment calculator — worked example: keep the same $26,960 loan and 60-month term, and change only the rate. At 4% APR the payment is $496.51 and total interest is $2,830.57. At 9% APR the payment rises to $559.65 and total interest climbs to $6,618.72. The pricier rate costs $63.14 more every month and $3,788.15 more over the life of the loan — on the identical car. Negotiating the rate down, or improving your credit before you apply, is worth more than haggling the payment down by stretching the term.
One term worth knowing at the dealership: in US dealer language, your monthly payment is often called your car note — “a $521 car note” simply means a $521 monthly payment. So if you have been looking for a car note calculator, you are in the right place: the payment this calculator shows is your note, and the total-interest figure is what that note really costs you across the full term.
How to estimate your car payment
Three steps, instant answers — calculate car payment, total interest and the true cost of any deal before you visit a dealer.
Vehicle price, sales tax, down payment and trade-in value.
Your APR and term in months — or flip to Payment → Max price.
Monthly payment, total interest and true cost — live.
⚙️How auto loan payments are calculated
Your loan is fully amortizing: every payment is the same amount, computed from the financed loan amount with the standard amortization formula — the same one lenders use:
M = loan × r(1+r)n ÷ ((1+r)n − 1)
r = APR ÷ 12 · n = months
Worked example: $30,000 car, $2,000 trade-in, 7% tax, $3,000 down, 6% APR, 60 months → loan $26,960.00, monthly $521.21, total interest $4,312.74, total cost of the car $36,272.74. Reverse example: a $500/month budget with $5,000 down buys a car priced up to $28,843.72 under the same terms.
Each month, interest is charged on your remaining balance at your monthly rate (APR ÷ 12). The rest of your fixed payment pays down principal. That’s why early payments are mostly interest — the balance is largest at the start — and later payments are mostly principal. The first-payment bar above shows the split for month one of your loan.
Extra payments toward principal early on save the most interest, because they shrink the balance that every future month’s interest is charged on.
Both reduce what you finance, but in different ways. A down payment is cash you put in up front, subtracted from the loan after tax is added. A trade-in reduces the taxable amount first — so in many states you also pay less sales tax (tax is charged on price minus trade-in), and only then does it reduce the loan.
Dollar for dollar, a trade-in usually saves you slightly more than a down payment because of that tax break. Raising either one lowers your monthly payment and your total interest.
A shorter term means a bigger monthly payment but much less total interest. Take the example above ($26,960 loan at 6%): a 3-year term costs $820.18/month but only $2,566.32 in interest, while a 7-year term drops the payment to $393.85/month yet costs $6,123.12 in interest — more than double.
Longer terms also carry the risk of owing more than the car is worth (being “upside down”) since cars depreciate fast. A 4–5 year term is a common middle ground.
How car loan interest works: daily interest, principal and total interest
Most car loans charge simple interest: interest accrues every day on the balance you still owe, and each monthly payment first covers the interest that has accrued since the last payment, with the rest reducing principal. Because the balance is highest at the start, early payments are mostly interest — on a $25,000 loan at an illustrative 6%, the first payment is $125.00 of interest and $358.32 of principal — and the interest share falls as the balance falls. Daily interest is simply balance × annual rate ÷ 365: $4.11 a day on $25,000 at 6% on day one, less every day the balance drops. Total interest is the sum of all those daily charges over the life of the loan, which is why term matters as much as rate: the table below prices the same $25,000 loan at 6% over five terms, all illustrative. A 0% offer is not automatically the cheapest deal either: compare it with the cash rebate you give up, on the same car and the same term. And extra payments work because they go straight to principal, shrinking every future day’s interest charge: $50 extra a month on the 60-month loan below saves $440.91 of interest and finishes 6 months early, assuming no prepayment penalty.
| Term | Monthly payment | Total interest | Total paid |
|---|---|---|---|
| 36 months | $760.55 | $2,379.74 | $27,379.74 |
| 48 months | $587.13 | $3,182.03 | $28,182.03 |
| 60 months | $483.32 | $3,999.20 | $28,999.20 |
| 72 months | $414.32 | $4,831.20 | $29,831.20 |
| 84 months | $365.21 | $5,677.96 | $30,677.96 |
Frequently asked questions
How is my monthly auto loan payment calculated?
With the standard amortization formula M = loan × r(1+r)^n ÷ ((1+r)^n − 1), where “loan” is the financed amount (price minus trade-in, plus sales tax, minus down payment, plus any negative equity or financed fees), r is the monthly rate (APR ÷ 12) and n is the number of monthly payments. The example deal ($30,000 car, 6% APR, 60 months) gives $521.21 per month.
How much should I put down on a car?
A common target is 20% of the price — on a $30,000 car that’s $6,000. A bigger down payment means a smaller loan, a lower monthly payment and less total interest. Just don’t drain your emergency savings to reach it; a slightly smaller down payment with cash left over is often wiser.
Does a trade-in reduce my auto loan?
Yes, in two ways. First, the trade-in value reduces the amount you finance. Second, in many states sales tax is charged on the price after the trade-in is subtracted — so a $30,000 car with a $2,000 trade-in is taxed on $28,000, saving $140 at a 7% rate. Note: CA, DC, HI and VA don’t allow the trade-in tax break, and Michigan caps it — the state picker above applies your state’s rule automatically.
What is a good interest rate for a car loan in 2026?
Rates depend mostly on your credit score, plus the term and whether the car is new or used — excellent credit earns the lowest rates. Compare offers from your bank, a credit union and the dealer, and check what each rate does to your total interest using the calculator above before you sign.
How long should my auto loan term be?
As short as you can comfortably afford. A 3-year term on the example loan costs only $2,566.32 in interest versus $6,123.12 on a 7-year term. Stretching to 7–8 years lowers the payment but can leave you owing more than the car is worth. Four to five years is the most common choice.
Does this calculator include taxes and fees?
Yes. Enter your sales tax rate and any title, registration and dealer fees; choose whether to roll them into the loan or pay them upfront. The results show the sales tax amount and your upfront payment separately, so nothing hides in the total.
What if I owe more on my trade-in than it’s worth?
That’s negative equity, and this calculator handles it: enter the amount owed and the payoff is rolled into your new loan. On the example deal, owing $5,000 on a $2,000 trade-in raises the loan to $31,960 and the payment to $617.88. Consider a larger down payment or a cheaper car instead of rolling negative equity forward.
How much car can I afford per month?
Use the Payment → Max price tab: enter the monthly payment that fits your budget and it works backwards to the sticker price. As a guardrail, keep the payment under 15% of your monthly take-home pay, and keep total car costs (payment, insurance, fuel) under 10% of gross income.
Is 0% APR always better than a cash rebate?
Not always — do the math. On a $30,000 car, 0% for 60 months costs $31,960 all-in, while a $2,500 rebate at 3.9% costs $31,769: the rebate wins by about $191. But a smaller rebate or a higher rate flips the answer. Run both offers through the calculator before you choose.
Is a car payment estimator the same as a car loan estimator?
Yes — the names are interchangeable. A car payment estimator works forward from a car’s price to its monthly payment, while a car loan estimator usually starts from the loan amount; both run the same amortization formula on the same inputs, so they return the same numbers. This page is both: Price → Payment mode estimates the payment from the deal, and Payment → Max price mode estimates the loan — and the car — that a given payment can carry.
How do I calculate a car payment before visiting a dealer?
Gather four numbers first: the car’s likely out-the-door price, your down payment and trade-in value, the APR you expect, and the term you want. It helps to get pre-approved by your bank or credit union before you shop — pre-approval gives you a real rate to work with instead of a guess. Enter the numbers above and you will see the monthly payment, total interest and true cost before anyone at the dealership runs a figure. Walking in with your own numbers makes it much harder to be sold a longer term or a higher rate dressed up as a lower payment.
How is daily interest on a car loan calculated?
Multiply the current balance by the annual rate and divide by 365, then multiply by the number of days since the last payment. On a $25,000 balance at 6%, that is $25,000 × 6% ÷ 365 = $4.11 a day at the start. As principal falls, the daily charge falls with it, which is why paying a few days early or adding principal early saves more than the same dollars paid late.
How do I find how much interest I have paid so far?
Your lender statement or online account shows the interest and principal split of every payment made, and the interest paid to date. If you only have the schedule, add the interest column for the payments already made. For a payoff figure, ask for a payoff quote: it charges interest only up to the payoff date, so it is lower than the remaining scheduled payments.
Is my car loan simple interest or precomputed interest?
Many car loans are simple-interest loans, where interest is charged on the declining balance and paying early or extra saves interest. Some loans use precomputed interest, where the total interest is fixed at signing and paying early saves little or nothing. The difference is in your contract and in the payoff quote: if the payoff figure drops by roughly the remaining principal, it behaves like simple interest. Check before assuming extra payments will save you money.
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