Auto Loan Calculator — Monthly Payment & Total Cost
Calculate a car loan payment with trade-in, down payment, sales tax, and fees. See total interest and the true cost of the loan. Free, instant.
Dealerships sell monthly payments, not cars — and a $399/month payment can hide a 84-month term that leaves you underwater for years. This calculator works from the actual numbers: vehicle price, trade-in, down payment, sales tax, and fees, then shows the payment, total interest, and payoff picture.
Stretch the term slider and watch total interest climb; add the sales tax back in and see why the out-the-door price is the only number to negotiate on.
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Car Loan Calculator
Calculate monthly auto loan payments, compare loan offers, and view amortization schedule.
| Year | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $5,985 | $1,605 | $4,380 | $20,870 |
| 2 | $5,985 | $1,293 | $4,692 | $16,178 |
| 3 | $5,985 | $959 | $5,026 | $11,152 |
| 4 | $5,985 | $601 | $5,384 | $5,768 |
| 5 | $5,985 | $218 | $5,768 | $0 |
Calculations are estimates. Actual loan terms depend on your credit score, income, and lender. Dealer financing may include markup. This is not financial advice.
Auto loan amortization — illustrated
A car loan is a fixed-payment amortizing loan: the amount financed — vehicle price minus down payment and trade-in, plus any sales tax rolled into the loan — is repaid in equal monthly installments while interest accrues each month on the remaining balance. Experian puts the average 2026 new-car APR at about 6.4% and the used-car APR near 11.4%, so a single point of rate or a year of term moves the payment by tens of dollars. Early payments are interest-heavy (the first installment on a $25,250 loan at 6.9% carries about $145 of interest), and only later does the balance fall quickly. Down payment and trade-in matter twice: they shrink the principal and therefore the total interest paid.
Left: how the financed amount is built from price minus down payment and trade-in, plus rolled-in sales tax. Right: the same loan amortizing — the first payments are mostly interest, the last mostly principal.
Marcus is buying a $35,000 car with a $7,000 down payment and a $5,000 trade-in at 6.9% APR over 60 months. His state charges 7.5% sales tax, which he rolls into the loan.
- Loan amount:$35,000 − $7,000 − $5,000 = $23,000, plus $2,250 tax → $25,250 financed
- Monthly payment:$498.79/mo over 60 months
- Total interest:$4,677 over the life of the loan
- Pay tax upfront instead:$454.34/mo on $23,000 — saves about $417 in interest
About this auto loan calculator
This page covers car payment calculator with tax, car loan interest calculator, how much car can i afford, out the door price calculator — all the same underlying task as auto loan calculator. The tool above is FreeToolHub's car loan calculator embedded in full: every feature works right here, and nothing you process is uploaded to any server.
Frequently asked questions
How is a car loan payment calculated?
Standard amortization on the amount financed: vehicle price − down payment − trade-in equity, plus sales tax and fees. Rate and term come from the lender offer. A $30,000 car with $5,000 down, 6% tax, and 60 months at 7% APR finances roughly $26,800 and costs about $531/month.
What loan term should I choose for a car?
Shorter terms cost more monthly but far less overall: at 7% APR, 60 months vs 84 months on $26,800 is about $531 vs $399 — but the 84-month loan adds roughly $2,800 of interest and stays underwater longer. Most advisors cap terms at 60 months so equity and reliability stay ahead of depreciation.