Auto Loan Calculator
Estimate your monthly car payment and the total interest over the life of the loan. Includes down payment, trade-in, and sales tax so the number reflects what you will actually finance.
- Amount financed
- $34,188
- Sales tax
- $2,188
- Total of payments
- $41,103
- Total interest
- $6,915
Estimate only. Dealer fees, registration, and add-ons are not included and vary by state.
How an auto loan payment works
A car loan is an amortizing loan, just like a mortgage: you make a fixed monthly payment, part of which covers interest and part of which reduces the balance you owe. The amount you finance is the vehicle price plus sales tax, minus your down payment and any trade-in value. A bigger down payment or trade-in lowers the amount financed, which lowers both your monthly payment and the total interest you pay.
A worked example
Say you buy a $35,000 car with $3,000 down and no trade-in, at a 7.5% APR over 60 months, with 6.25% sales tax. Tax adds about $2,188, so you finance roughly $34,188. That works out to about $685 per month, and you would pay around $6,900 in interest over the five-year term. Shortening the term to 48 months raises the monthly payment but cuts the total interest noticeably.
Tips to pay less for your car
- Get pre-approved at a bank or credit union before visiting the dealer, so you can compare their financing against a real offer.
- Watch the term. 72- and 84-month loans lower the payment but you pay much more interest and risk owing more than the car is worth.
- Negotiate the price, not the payment. Dealers can lower a monthly payment by stretching the term while keeping the price high.
- Put down more if you can — it reduces interest and the chance of going “underwater” on the loan.
What is not included
This estimate excludes documentation fees, registration, title, and optional add-ons like extended warranties or gap insurance, all of which vary by state and dealer. Your actual APR depends on your credit score, the lender, and whether the car is new or used.
Frequently asked questions
Is it better to put more money down on a car?+
Generally yes. A larger down payment reduces the amount you finance, which lowers both your monthly payment and the total interest. It also reduces the risk of owing more than the car is worth, especially in the first couple of years when depreciation is fastest.
What credit score do I need for a good auto loan rate?+
Borrowers with scores in the mid-700s and above typically qualify for the lowest advertised APRs. Scores in the 600s usually still qualify but at higher rates, and below about 600 rates climb sharply. Checking your score before shopping helps you know what to expect.
Should I finance through the dealer or my bank?+
Compare both. Dealers sometimes offer promotional low-APR financing, but a pre-approval from your bank or credit union gives you a benchmark and negotiating leverage. Take whichever is genuinely cheaper for your situation.
How is sales tax handled in this calculator?+
Sales tax is applied to the vehicle price minus your trade-in (the way most US states tax it) and added to the amount financed. Rules vary by state, so treat the tax figure as an estimate.