Auto Loan Calculator
Calculate auto loan payments, total interest, amortization schedule. Compare loan terms instantly. Free car financing calculator for smart buying.
Results
Monthly Payment
Note: This calculator provides estimates for auto loan payments. Actual rates and terms may vary based on credit score and lender requirements.
Trade-in Tax Benefit: In most states, sales tax is calculated on the difference between the new car price and trade-in value, potentially saving you money.
APR vs Interest Rate: The interest rate shown is the nominal rate. Your APR (Annual Percentage Rate) may be higher when including loan fees.
Smart Car Buying: Master Your Auto Loan
The average American spends $738 monthly on car payments, yet most buyers focus solely on negotiating the sticker price. Understanding the complete financial picture—including interest rates, trade-ins, taxes, and loan terms—can save thousands over your loan's lifetime. Our auto loan calculator reveals the true cost of vehicle ownership and helps optimize your financing strategy.
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Two Powerful Calculator Modes
Our calculator operates in two distinct modes, each designed for different stages of your car-buying journey:
Total Price Mode: Know the car price? Calculate your monthly payment, total interest, and see the complete cost breakdown including taxes and fees.
Monthly Payment Mode: Have a budget? Discover exactly how much car you can afford based on your comfortable monthly payment.
Real-World Example: Sarah's Car Purchase
Let's follow Sarah, a marketing manager, through her car-buying process using both calculator modes to make an informed decision.
Sarah's Situation
- Looking at a $35,000 SUV
- Has $7,000 saved for down payment
- Current car worth $12,000 (owes $5,000)
- Lives in Texas (6.25% sales tax)
- Pre-approved for 4.5% APR
Insira aqui imagem ['calculator interface showing sarah's inputs with trade-in value and down payment fields highlighted'] , ['Auto Loan Calculator Example Inputs']
Step 1: Using Total Price Mode
Sarah starts by entering her dream car's details:
| Input Field | Sarah's Entry | Why It Matters |
|---|---|---|
| Auto Price | $35,000 | Starting negotiation point |
| Loan Term | 60 months | Balance of payment vs interest |
| Interest Rate | 4.5% | Based on 720 credit score |
| Cash Incentives | $1,500 | Manufacturer rebate available |
| Down Payment | $7,000 | Reduces loan amount |
| Trade-in Value | $12,000 | Dealer's offer |
| Amount Owed | $5,000 | Remaining loan balance |
| State | Texas | Auto-populates tax rate |
| Title & Fees | $1,500 | Dealer doc + DMV fees |
Sarah's Results Breakdown
After clicking Calculate, Sarah sees:
Monthly Payment: $421.67
Total Loan Amount: $23,344
Total Interest: $1,956
Total Cost: $36,956
Hidden Savings: Trade-in Tax Benefit
The calculator reveals a crucial detail: In Texas, Sarah pays sales tax only on the difference between the new car and trade-in value:
Without Trade-in: $33,500 (after incentive) × 6.25% = $2,094 tax With Trade-in: ($33,500 - $12,000) × 6.25% = $1,344 tax Savings: $750
Important: Not all states offer this tax benefit. The calculator automatically applies your state's rules when you select from the dropdown.
Step 2: Working Backwards from Budget
Sarah realizes $421 might stretch her budget. She switches to Monthly Payment mode to explore options. Before proceeding, she checks her debt-to-income ratio to ensure the new payment won't exceed the recommended 43% threshold for all debts combined.
Finding Her Affordable Price Range
Sarah enters her comfortable payment of $350/month with the same terms:
- Click "Monthly Payment" tab
- Enter $350 in Monthly Payment field
- Keep other inputs the same (term, rate, trade-in)
- Click Calculate
Result: Maximum affordable car price: $28,500
This insight helps Sarah negotiate or consider different vehicles within her true budget.
The Loan Term Decision: Shorter vs Longer
One of the most impactful decisions is choosing your loan term. Let's compare Sarah's options:
| Loan Term | Monthly Payment | Total Interest | Total Cost | Interest Saved |
|---|---|---|---|---|
| 36 months | $695 | $1,178 | $36,178 | $778 |
| 48 months | $532 | $1,564 | $36,564 | $392 |
| 60 months | $422 | $1,956 | $36,956 | — |
| 72 months | $357 | $2,355 | $37,355 | -$399 |
| 84 months | $311 | $2,760 | $37,760 | -$804 |
"While the 84-month loan drops Sarah's payment to $311, she'd pay $804 more in interest. The 48-month term offers a sweet spot—manageable payments with reasonable interest costs."
If Sarah chooses the shorter term and wants to pay off even faster, our debt payoff calculator can show how extra payments dramatically reduce interest costs.
Advanced Calculator Features
Beyond basic calculations, our tool offers sophisticated features for detailed analysis:
Amortization Schedule Insights
Click "Show Amortization Schedule" to reveal payment breakdowns:
- Annual View: See yearly principal reduction and interest totals
- Monthly View: Track exact principal/interest split for each payment
Key insights from Sarah's schedule: - First payment: $125 principal, $297 interest - Final payment: $419 principal, $3 interest - Month 30: Principal exceeds interest in each payment
Understanding the Cost Pie Chart
The calculator displays a pie chart breaking down your total cost: - Principal: Actual vehicle cost after incentives - Interest: Total financing charges - Taxes & Fees: Government and dealer charges
This visualization helps identify where to focus cost-reduction efforts.
Strategic Car Shopping Tips
Use the calculator strategically throughout your car-buying journey:
Before Shopping: Know Your Numbers
Action Plan:
1. Use Monthly Payment mode to find your true budget
2. Get pre-approved to know your interest rate
3. Research trade-in values at multiple sources
4. Check manufacturer incentives online
At the Dealership: Negotiate Smartly
Armed with calculator results, focus negotiations on:
- Vehicle price (not monthly payment)
- Trade-in value separately from new car price
- Interest rate if dealer financing beats your pre-approval
- Fees that seem excessive or unexplained
Red Flag: Dealers asking "What monthly payment do you want?" before discussing price. Always negotiate total price first, then calculate financing.
Special Financing Situations
The calculator handles complex scenarios beyond simple purchases:
Negative Equity (Upside-Down Trade-in)
Example: You owe $15,000 but your car's worth $10,000:
Trade-in Value: $10,000 Amount Owed: $15,000 Net Trade-in: -$5,000 (added to new loan) Impact: Increases loan amount by $5,000 Monthly payment increase: ~$92 (60-month term)
Zero Down Payment Financing
Setting down payment to $0 shows the full financing impact:
- Higher monthly payments - More interest over loan lifetime - Immediate negative equity risk - May require higher credit score for approval
Cash Rebate vs Low-APR Financing
Manufacturers often offer choices like "$2,000 cash back OR 0% APR." Use the calculator to compare both scenarios side-by-side. For more complex comparisons involving multiple lenders or lease options, our loan comparison calculator provides detailed analysis.
| Option | Incentive | Rate | Monthly | Total Cost |
|---|---|---|---|---|
| Cash Rebate | $2,000 | 4.5% | $410 | $36,600 |
| Low APR | $0 | 0% | $433 | $35,000 |
In this case, 0% financing saves $1,600 despite higher payments.
Insira aqui imagem ['comparison chart showing total savings between different financing options over loan lifetime'] , ['Auto Loan Financing Options Comparison']
State-Specific Considerations
Your location significantly impacts total cost. The calculator accounts for:
No Sales Tax States: Alaska, Delaware, Montana, New Hampshire, Oregon
Trade-in Tax Credit States: Most states except California, Hawaii, Kentucky, Maryland, Michigan, Montana, Virginia
High Registration Fee States: California, Montana, Iowa (may exceed $1,000)
Interest Rates by Credit Score
Your creditworthiness dramatically affects loan terms. Before shopping, check your credit score and use our credit card payoff calculator if high balances are impacting your score.
| Credit Score | Typical APR | Monthly Payment* | Total Interest* |
|---|---|---|---|
| 780+ | 3.5% | $363 | $1,780 |
| 700-779 | 4.5% | $372 | $2,320 |
| 650-699 | 7.5% | $400 | $4,000 |
| 600-649 | 11.5% | $438 | $6,280 |
| Below 600 | 15%+ | $476 | $8,560 |
*Based on $20,000 loan, 60 months
Alternative Financing Options
If traditional auto loans don't fit your situation, consider these alternatives:
Home Equity Line of Credit: For buyers with significant home equity, our home equity loan calculator shows how using your home's value might secure lower rates than traditional auto financing.
Lease vs Buy: Sometimes leasing makes more financial sense, especially for luxury vehicles or if you prefer newer cars. Compare your options using our lease calculator to see which path saves more money long-term.
Pro Tip: Save your calculation results using the print button. Create scenarios for different vehicles, then compare printouts side-by-side at home. This prevents emotional decisions at the dealership and ensures you stick to your budget.