Auto Loan Calculator
Calculate your monthly car payment with trade-in value, down payment, sales tax, and view a complete amortization schedule.
Results
Monthly Payment
$525.87
$31,552
Total Cost
Amount Financed
Interest
Amount Financed
$27,100
Total Interest
$4,452
Total Cost of Loan
$31,552
Total Payments
60
Amount Financed Breakdown
Vehicle Price
$30,000
Sales Tax (7%)
+$2,100
Down Payment
-$5,000
Trade-in Value
-$0
Amount Financed
$27,100
Loan Summary
Interest Rate
6.5%
Loan Term
60 months
Interest Ratio
14.1%
Payoff Date
Dec 2030
Amortization Schedule
| Month | Payment | Principal | Interest | Balance |
|---|
Understanding Auto Loan Calculations
Amount Financed Formula
Amount = Price + Tax - Down - Trade-in
Your loan amount is the vehicle price plus sales tax, minus your down payment and trade-in value. A larger down payment or trade-in reduces what you need to borrow.
Monthly Payment Formula (PMT)
M = P * [r(1+r)^n] / [(1+r)^n - 1]
Where M is monthly payment, P is amount financed, r is monthly interest rate (APR / 12), and n is total number of payments.
Total Interest Paid
Total Interest = (M * n) - P
The total interest is your total payments minus the amount financed. Shorter terms and lower rates significantly reduce total interest.
Frequently Asked Questions
Your auto loan amount (amount financed) is calculated as: Vehicle Price + Sales Tax - Down Payment - Trade-in Value. For example, if you're buying a $30,000 car with 7% sales tax ($2,100), a $5,000 down payment, and a $8,000 trade-in, your amount financed would be $30,000 + $2,100 - $5,000 - $8,000 = $19,100.
A good auto loan interest rate depends on your credit score, the vehicle (new vs used), and current market conditions. As of 2024-2025, excellent credit (750+) may qualify for rates around 5-7% for new cars and 7-9% for used cars. Good credit (700-749) typically sees rates 1-2% higher. Always shop multiple lenders to find the best rate for your situation.
A larger down payment reduces your loan amount, which means lower monthly payments and less total interest paid over the life of the loan. Financial experts typically recommend putting down at least 20% on a new car and 10% on a used car to avoid being "upside down" on your loan (owing more than the car is worth). However, the best down payment depends on your personal financial situation.
Your trade-in value directly reduces the amount you need to finance. For example, if you're buying a $35,000 car and trade in your old vehicle for $10,000, you only need to finance $25,000 (plus applicable taxes, minus any additional down payment). A higher trade-in value means a lower loan amount, lower monthly payments, and less interest paid over time.
Auto loan terms typically range from 12 to 84 months. Shorter terms (36-48 months) have higher monthly payments but save significantly on total interest. Longer terms (60-84 months) lower your monthly payment but cost more in interest and risk being upside down on your loan. Most financial advisors recommend terms of 48-60 months as a balance between affordability and total cost.