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About the auto loan calculator
Before you walk into a dealership, know your numbers. This calculator shows the monthly payment for a car loan, the total interest, and the total cost of the car, including interest.
It handles the parts that dealers add: a down payment, a trade-in value, sales tax, and fees added to the loan. The result updates as you type.
Not sure what price to look for? Switch to How much car can I afford?, type what you can pay per month, and the calculator works out the car price you can afford.
How to use it
- Choose Find my payment, or How much car can I afford?
- Type the car price, the interest rate per year, the down payment and the trade-in value
- Pick the loan term — 24 to 84 months
- Type the sales tax for your area (on English pages the default is 7%)
- Open More options for fees added to the loan, and to choose whether sales tax is charged on the price minus the trade-in
- Read the monthly payment, the loan amount and the total interest. The table below the result compares loan terms
Car payment examples
Loan only, 7% interest rate (no tax or fees):
| Loan | 36 months | 48 months | 60 months | 72 months | 84 months |
|---|---|---|---|---|---|
| $20,000 | $618 | $479 | $396 | $341 | $302 |
| $30,000 | $926 | $718 | $594 | $511 | $453 |
| $40,000 | $1,235 | $958 | $792 | $682 | $604 |
And the interest you pay in total:
| Loan | 36 months | 48 months | 60 months | 72 months | 84 months |
|---|---|---|---|---|---|
| $20,000 | $2,232 | $2,988 | $3,761 | $4,551 | $5,356 |
| $30,000 | $3,347 | $4,483 | $5,642 | $6,826 | $8,034 |
| $40,000 | $4,463 | $5,977 | $7,523 | $9,101 | $10,711 |
A longer loan has a lower monthly payment but costs much more in interest. On a $30,000 loan, going from 48 to 84 months saves $266 a month — and adds $3,551 of interest.
Trade-in and sales tax
- The trade-in value works like a down payment: it lowers the loan.
- In many US states, sales tax is charged only on the price minus the trade-in. The box under More options switches this on or off — check your state's rule.
- Outside the USA the price usually includes tax already. Pages in other languages start with 0% sales tax.
How much car can I afford?
A common guide is the 20/4/10 rule: put 20% down, finish the loan in 4 years (48 months), and keep the car payment plus insurance under 10% of your income. It is a guide, not a law, but it keeps a car from taking over your budget.
With a monthly budget of $500, a 60-month loan at 7% and $3,000 down, you can afford a car of about $26,400 including tax. Try your own numbers in the afford mode.
Frequently asked questions
How is a car payment calculated?
The same way as any loan: loan × r ÷ (1 − (1 + r)^−n), where r is the monthly interest rate (the yearly rate ÷ 12) and n is the number of months. The loan is the price plus tax and fees, minus your down payment and trade-in.
Is a 72-month or 84-month car loan a bad idea?
Not always, but be careful. The payment is lower, yet you pay more interest, and the car may be worth less than you owe for years. If you can, choose 60 months or less.
Should I use a down payment?
Yes, if you can. A bigger down payment means a smaller loan, a lower payment and less interest — and it protects you if the car loses value fast.
Does the interest rate depend on my credit?
Yes. Your credit score, the loan term and whether the car is new or used all change the rate. Ask for quotes from a bank or credit union before the dealer's offer.
Can I pay the loan off early?
Usually yes. Extra payments go to the principal and cut interest. Ask the lender if there is a prepayment penalty first.
Is this financial advice?
No. It is a planning tool. Your lender's offer is the one that counts.
Good to know
- Works with any currency — choose it at the top
- Your numbers are saved only in this browser
- Nothing you type is sent anywhere
Related tools
- Mortgage Calculator — the same idea for a home
- Loan Calculator — any loan, any term
- Fuel Cost Calculator — what the car costs to run
- Budget Calculator — does the payment fit?
- Debt Payoff Calculator — pay loans off faster
