Auto Loan Calculator
Calculate your exact monthly car payment including sales tax, dealer fees, trade-in credit, and down payment — plus total interest and a full amortization schedule. Pre-loaded with an example — try it now!
🚀 Quick Start Examples
Typical 2026: Excellent credit 5–7% · Good 7–9% · Fair 9–14%
Loan Breakdown
- Vehicle Price
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- Sales Tax
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- Fees
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- Down + Trade-In
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- Amount Financed
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Cost of Borrowing
- Total Interest
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- Total of Payments
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- Total Vehicle Cost
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Interpretation
Compare Loan Terms
| Term | Monthly Payment | Total Interest | vs. Your Term |
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Loan Balance & Interest Over Time
📋 Full Amortization Schedule (click to expand)
| # | Payment | Principal | Interest | Balance |
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How Auto Loans Work
Your amount financed is: vehicle price + sales tax + fees − down payment − trade-in value. The monthly payment follows the standard amortization formula:
The trade-in tax advantage: Most states tax only the difference between the new car price and your trade-in. Trading in a $10,000 car against a $35,000 purchase at 6.25% tax saves $625 versus selling it privately (though private sale often nets a higher price — compare both).
The term-length trap: Dealers sell payments, not prices. Stretching from 60 to 84 months on a $30,000 loan at 8% drops the payment $186 but adds $3,900 in interest — and leaves you underwater for years as the car depreciates faster than the balance falls.
The 20/4/10 rule: A classic affordability guideline — 20% down, maximum 4-year term, and total vehicle expenses (payment + insurance + fuel) under 10% of gross income.
Frequently Asked Questions
Should I finance through the dealer or my bank?
Get pre-approved by your bank or credit union first — it gives you a benchmark rate and negotiating power. Dealers sometimes beat it (especially with manufacturer promotional rates like 0.9% APR), but dealer financing can include markup. Compare both.
Can I pay off my auto loan early?
Most auto loans have no prepayment penalty (verify in your contract). Extra principal payments shorten the loan and cut interest — an extra $100/month on a 60-month, $30,000 loan at 8% saves roughly $1,000 in interest and pays off 11 months early.
What credit score do I need for a car loan?
You can get approved with almost any score, but rates differ enormously: 750+ gets the best advertised rates, while sub-600 borrowers may pay 15-21% APR. Improving your score from 620 to 700 before buying can save $3,000+ on a typical loan.
What is GAP insurance and do I need it?
GAP covers the difference between your loan balance and the car's insured value if it's totaled. It's worth considering when you put less than 20% down or finance longer than 60 months — exactly the situations where you're likely underwater.