Auto Loan Calculator Monthly car payment with trade-in, sales tax, extra payments and a full amortization schedule
Work out your real monthly car payment, not just the sticker-price version. Add your down payment, trade-in and any loan you still owe on it, state sales tax and dealer fees. See total interest, the true cost of the car, how long you could be upside down, and how much car fits your budget.
Payment math uses the standard amortization formula lenders disclose under Truth in Lending. Guidance draws on the CFPB, the FTC and IRS rules on car loan interest.
Your car and loan
Enter the deal as the dealer quotes it. Results update as you type.
Loan terms
Down payment and trade-in
Taxes and fees
Your monthly car payment
$0
Calculating.
Where your money goes
The full cost of owning this car through the loan.
Loan balance vs. estimated car value
When the green line is above the amber line, you owe more than the car is worth.
Compare loan terms
Same car and rate. Longer terms lower the payment but raise the total cost.
| Term | Monthly payment | Total interest | Total paid |
|---|
Ways to save on this loan
Each change tested on its own against your current deal.
Auto loan amortization schedule
Yearly summary.
Insights for your car loan
What the numbers are telling you.
Key takeaways
- Your car payment is based on the amount financed: price, plus tax and fees if rolled in, minus your down payment, trade-in equity and rebates.
- On $30,000 at 7%, a 60-month loan costs about $594 a month and $5,642 in interest. Stretching to 84 months cuts the payment to $453 but raises interest to $8,034.
- Each percentage point of APR on that loan costs roughly $850 in extra interest over five years, so shopping for the rate matters.
- In most states, sales tax applies only to the price after your trade-in, which can save you hundreds.
- A common guideline is 20% down, a loan of four years or less, and total car costs under 10% of gross income.
How is a car payment calculated?
A car payment is calculated by amortizing the amount financed over the loan term at the loan’s interest rate. The amount financed is the vehicle price, plus sales tax and fees if they are added to the loan, minus your down payment, rebates and trade-in equity. Each fixed monthly payment covers that month’s interest first, and the rest reduces the balance.
Most online car payment calculators stop at price, rate and term. Real deals are messier. The dealer may take your trade-in but you still owe money on it, your state may tax the full price or only the difference after the trade-in, and fees can add more than a thousand dollars. This auto loan calculator handles all of it so the payment you see is the payment you will actually sign for.
It also answers questions most tools leave out: how long you could owe more than the car is worth, how different terms compare side by side, what an extra payment saves, and the most expensive car your monthly budget can support.
How to use this auto loan calculator
- Choose a mode. Use Monthly payment if you have a car in mind, or What can I afford? to start from your budget.
- Enter the price and loan terms. Use the negotiated price, not the sticker price, plus the APR and term from your preapproval or the dealer’s offer.
- Add your down payment, rebates and trade-in. If you still owe on your current car, enter that amount too. Any shortfall is added to the new loan.
- Set sales tax and fees. Choose how your state taxes trade-ins and whether you are rolling tax and fees into the loan.
- Open Advanced options to add extra monthly payments, set your first payment date, and adjust the depreciation estimate.
The auto loan payment formula
Amount financed = price − down payment − rebates − trade-in value + amount owed on trade-in + tax and fees (if financed)
Monthly payment = L × r ÷ (1 − (1 + r)−n)L = amount financed, r = APR ÷ 12, n = number of monthly payments
Total interest = monthly payment × n − L
Worked example by hand
Finance $30,000 at 7% APR for 60 months. The monthly rate is 0.07 ÷ 12 = 0.0058333. Raise 1.0058333 to the power of −60 to get 0.7053. Then 1 − 0.7053 = 0.2947, and $30,000 × 0.0058333 ÷ 0.2947 = $594.04 a month. Over 60 payments you pay $35,642, so the interest is $5,642.
Early payments are mostly interest because the balance is highest at the start. In month one of this loan, $175 of the $594 payment is interest. In the final year, interest falls from about $40 to under $4 a month. The schedule in the calculator shows this split for every payment, and our Loan Amortization Calculator builds the same month-by-month breakdown for any type of loan.
What is the best car loan term?
A longer term lowers the monthly payment but increases the interest you pay and keeps you upside down longer. Here is $30,000 financed at 7%.
| Loan term | Monthly payment | Total interest | Total paid |
|---|---|---|---|
| 36 months | $926.31 | $3,347 | $33,347 |
| 48 months | $718.39 | $4,483 | $34,483 |
| 60 months | $594.04 | $5,642 | $35,642 |
| 72 months | $511.47 | $6,826 | $36,826 |
| 84 months | $452.78 | $8,034 | $38,034 |
Going from 60 to 84 months saves $141 a month but costs $2,392 more in interest. Lenders also tend to charge higher rates on longer terms, which widens the gap further. If only a 72 or 84-month loan makes the payment work, it is usually a sign to look at a less expensive car.
How your interest rate changes the payment
Your APR depends mostly on your credit score, whether the car is new or used, and the loan term. Used car loans and borrowers with lower credit scores typically pay noticeably higher rates. This table shows $30,000 over 60 months at different APRs.
| APR | Monthly payment | Total interest |
|---|---|---|
| 4% | $552.50 | $3,150 |
| 6% | $579.98 | $4,799 |
| 8% | $608.29 | $6,498 |
| 10% | $637.41 | $8,245 |
| 12% | $667.33 | $10,040 |
| 15% | $713.70 | $12,822 |
| 18% | $761.80 | $15,708 |
The difference between 6% and 12% on the same car is more than $5,000. The Consumer Financial Protection Bureau recommends getting preapproved by a bank or credit union before visiting the dealer, so you have a rate to compare against dealer financing. For current national averages, the Federal Reserve publishes auto loan rates in its G.19 consumer credit release.
How much should you put down on a car?
A larger down payment lowers the amount you borrow, your payment and your interest, and reduces the chance of owing more than the car is worth. Here is a $35,000 car at 7% for 60 months, ignoring tax and fees.
| Down payment | Amount financed | Monthly payment | Total interest |
|---|---|---|---|
| $0 | $35,000 | $693.04 | $6,583 |
| $3,500 (10%) | $31,500 | $623.74 | $5,924 |
| $7,000 (20%) | $28,000 | $554.43 | $5,266 |
| $10,000 | $25,000 | $495.03 | $4,702 |
Twenty percent down is a common target for new cars because new vehicles lose value fastest in their first years. Ten percent is a more typical minimum for used cars.
Trade-ins, negative equity and sales tax
Trade-in equity
Your trade-in equity is its value minus what you still owe on it. Positive equity works like a down payment. If you owe more than the car is worth, the difference is negative equity, and dealers usually add it to your new loan. That means you start the new loan already owing more than the new car is worth. The FTC advises asking the dealer to show exactly how any negative equity is handled before you sign.
How trade-ins reduce sales tax
Most U.S. states charge sales tax only on the price after subtracting your trade-in. With a $35,000 car, an $8,000 trade-in and a 7% tax rate, you pay tax on $27,000 rather than $35,000, saving $560. A few states tax the full price regardless. Use the “Sales tax is charged on” option to match your state, and check your state’s motor vehicle agency for the exact rule.
Rolling tax and fees into the loan
Financing tax and fees reduces what you pay at signing, but you pay interest on them for the life of the loan. Paying them upfront is cheaper if you have the cash.
How much car can I afford?
A widely used guideline is the 20/4/10 rule: put at least 20% down, finance for no more than four years, and keep total car costs, including payment, insurance and fuel, under 10% of your gross monthly income. On a $6,000 monthly gross income, that is about $600 a month for everything car related.
Switch the calculator to What can I afford? and enter the monthly payment you are comfortable with. It works backwards through the rate, term, down payment, trade-in, tax and fees to find the highest vehicle price that fits. Remember that insurance, fuel and maintenance come on top of the loan payment.
How extra payments shorten your car loan
Most auto loans have no prepayment penalty, so anything you pay above the required amount goes straight to principal. Here is $30,000 at 7% for 60 months.
| Extra each month | Paid off in | Total interest | Interest saved |
|---|---|---|---|
| $0 | 60 months | $5,642 | – |
| $50 | 55 months | $5,110 | $532 |
| $100 | 50 months | $4,670 | $972 |
| $200 | 43 months | $3,988 | $1,654 |
Check your loan contract first, and tell your lender to apply extra money to principal rather than to next month’s payment. If you are juggling several debts, compare the interest rates: paying down a higher-rate student or personal loan may save more. The Student Loan Repayment Calculator shows how extra payments and different repayment plans change a student loan.
Can you deduct car loan interest?
For tax years 2025 through 2028, U.S. buyers may deduct up to $10,000 a year of interest on a loan for a new vehicle bought for personal use after December 31, 2024, if the vehicle had final assembly in the United States, according to IRS Publication 6126. The deduction is available whether or not you itemize, but it phases out for modified adjusted gross income above $100,000, or $200,000 for joint filers. Used cars and leases do not qualify.
The yearly totals in the calculator’s amortization schedule show how much interest you pay in each year of the loan, which is the figure you would need for this deduction. Full details are on the IRS One, Big, Beautiful Bill provisions page.
Worked example using the default inputs
A buyer negotiates a $35,000 car, puts $5,000 down, trades in a car worth $8,000 with nothing owed, pays 7% sales tax on the price after the trade-in, and has $1,200 in fees. Tax and fees are added to a 60-month loan at 7% APR.
- Sales tax: 7% of $27,000 = $1,890, a $560 saving from the trade-in
- Amount financed: $35,000 − $5,000 − $8,000 + $1,890 + $1,200 = $25,090
- Monthly payment: $496.81 for 60 months
- Total interest: $4,718.72
- With $100 extra a month: paid off in 49 months with $3,779 in interest, saving about $940
How I verified this calculator
Monthly payments were checked against the standard amortization formula and Excel’s PMT function, and every schedule was confirmed to end at a zero balance with total principal equal to the amount financed. Tax and trade-in handling were tested for both state conventions, and the affordability mode was verified by running its suggested price back through the payment mode. All tables on this page come from the same engine that powers the tool.
Common car loan mistakes
Negotiating the monthly payment instead of the price
A dealer can hit almost any monthly number by stretching the term. Agree on the vehicle price first, then discuss financing.
Skipping preapproval
Without an outside offer, you have no way to judge whether dealer financing is competitive. Credit unions often offer some of the lowest auto rates.
Rolling negative equity into another long loan
Carrying an old balance into a new 72 or 84-month loan can leave you upside down for years. Paying down the old loan or choosing a cheaper car breaks the cycle.
Paying for add-ons you did not ask for
Extended warranties, service contracts and other extras are optional and are often added into the loan. The CFPB and FTC both advise reviewing every line of the contract before signing.
Related loan calculators
These tools from the same Personal Loans and Auto collection break down monthly payments and full repayment schedules for other borrowing decisions. Browse every tool in the finance calculators hub.
Auto loan calculator FAQs
Find the amount financed, divide your APR by 12 to get the monthly rate, then use the formula payment = L × r ÷ (1 − (1 + r)^−n). For $30,000 at 7% over 60 months, the payment is $594.04.
At 7% APR, a $30,000 loan costs about $926 a month over 36 months, $718 over 48 months, $594 over 60 months, $511 over 72 months and $453 over 84 months.
They lower the payment but cost much more interest and keep you owing more than the car is worth for longer. On $30,000 at 7%, an 84-month loan costs $2,392 more in interest than a 60-month loan.
Aim for about 20% on a new car and at least 10% on a used car. A bigger down payment lowers your payment and interest and reduces the risk of negative equity.
A common guideline is the 20/4/10 rule: 20% down, a loan of four years or less, and total car costs under 10% of gross monthly income. Use the What can I afford? mode to turn your budget into a maximum vehicle price.
It can be. Many buyers roll sales tax and fees into the loan, which lowers the cash due at signing but adds interest. You can also pay them upfront.
In most U.S. states, yes. Sales tax is charged on the price after subtracting the trade-in value. A few states tax the full price, so check your state’s rule.
Negative equity means you owe more on your car loan than the car is worth. If you trade it in, the shortfall is usually added to your new loan, increasing your payment and interest.
Most auto loans allow early payoff without a penalty, but check your contract. Adding $100 a month to a $30,000, 60-month loan at 7% pays it off 10 months early and saves about $970 in interest.
The interest rate is the cost of borrowing the principal. APR also includes certain finance charges, so it is the better number for comparing offers. Lenders must disclose the APR under the Truth in Lending Act.
For 2025 through 2028, you may deduct up to $10,000 a year of interest on a loan for a new, U.S.-assembled vehicle bought for personal use, with a phase-out above $100,000 of modified AGI ($200,000 joint). Used cars and leases do not qualify.
Yes for the figures you enter. It uses the standard amortization formula lenders use. Your actual payment can differ slightly because of exact payment dates, lender fees, and your state’s tax and fee rules.
Manzoor Ahmad
Manzoor builds and tests every calculator on DexoCalc by checking its formulas against published sources and hand-worked examples. This auto loan calculator was verified against the standard amortization formula, Excel’s PMT function, and consumer guidance from the CFPB, FTC and IRS. Read more about Manzoor.
Sources and references
- Consumer Financial Protection Bureau, Auto loans.
- Federal Trade Commission, Understanding Vehicle Financing.
- Board of Governors of the Federal Reserve System, G.19 Consumer Credit.
- Internal Revenue Service, Publication 6126: Purchased a New Vehicle?
- Internal Revenue Service, One, Big, Beautiful Bill provisions.
This auto loan calculator provides estimates for education and planning. It assumes a fixed rate, equal monthly payments and the tax and fee settings you choose. Depreciation is a rough estimate. Your lender’s disclosure is the final word on your payment. It is not financial, tax or legal advice.