Auto Loan Calculator
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About Auto Loans
A car deal has four levers — price, rate, term, and trade — and dealerships are practiced at moving the conversation to “what monthly payment fits your budget?” because a payment can be made to look small by stretching the term. Running the math yourself before the finance office is the single best negotiating tool you can bring.
Enter the negotiated price, your down payment and trade-in, your state's vehicle sales tax, and the APR you've been quoted or pre-qualified for. You get the payment, the financed amount with its build-up, total interest over the loan, and the all-in cash cost of the car — the number the payment conversation is designed to hide.
Comparing against a personal loan or refinance? The general-purpose math is in the Loan Calculator
The Payment Math
Standard amortization on the true financed amount:
Financed = price + sales tax − down payment − trade-in (tax on price − trade-in in most states) Payment = Financed × r ÷ (1 − (1 + r)⁻ⁿ), r = APR ÷ 1200
Worked example: a $30,000 car with $3,000 down, no trade, 6% tax, 7% APR for 60 months → financing $28,800, paying $570.27 a month and $5,416 of interest — $37,216 total cash over five years. Add a $5,000 trade-in and stretch to 72 months and the payment drops to $400.65, but see the term warning below.
Payment per $10,000 Borrowed
60-month payments per $10,000 financed — scale to any loan size (all computed by this calculator's formula):
| APR | Payment per $10k (60 mo) | Interest per $10k |
|---|---|---|
| 5% | $188.71 | $1,323 |
| 6% | $193.33 | $1,600 |
| 7% | $198.01 | $1,881 |
| 8% | $202.76 | $2,166 |
| 9% | $207.58 | $2,455 |
| 10% | $212.47 | $2,748 |
Quick use: financing $28,800 at 7%? 2.88 × $198.01 ≈ $570 a month. Each APR point costs roughly $280–290 more interest per $10k over five years — which is what a better credit score is worth in car terms.
Rules That Keep a Car Affordable
The budgeting conventions worth knowing before the dealership visit:
- The 20/4/10 rule of thumb: ~20% down, no more than a 4-year term, all car costs (payment + insurance + fuel) under 10% of gross income.
- Long terms (72–84 months) buy a lower payment with slower equity: you owe more than the car is worth for years — negative equity that rolls painfully into the next purchase.
- Get pre-qualified with a bank or credit union before the dealership; the dealer's finance office then has a real number to beat rather than a captive audience.
- Negotiate the PRICE, not the payment — every payment target can be hit by quietly stretching the term or padding add-ons.
- Gap insurance matters exactly when down payment is small and term is long — the situations this calculator will show as slow-equity loans.
The CFPB's auto-loan guide (cited below) covers the negotiation sequence and the add-ons worth refusing.
Frequently Asked Questions
How do I calculate a car payment?
Financed amount (price + tax − down − trade) × monthly rate ÷ (1 − (1+rate)⁻ᵐᵒⁿᵗʰˢ). Financing $28,800 at 7% for 60 months gives $570.27. The per-$10k table above makes any loan size a one-multiplication estimate.
Is sales tax charged on the full price or after trade-in?
In most states, on price minus trade-in — trading a $5,000 car at 6% tax saves $300 beyond the trade value itself. A handful of states tax the full price regardless. Your state DMV's fee page settles it; this calculator uses the majority convention.
Is a 72- or 84-month car loan bad?
It's expensive and slow to build equity: more months of interest AND more years underwater on a depreciating asset. Sometimes it's the honest budget answer — but compare total interest across terms first, and if only 84 months makes a car affordable, the car may be the problem.
What APR should I enter?
The rate from YOUR pre-qualification — auto APRs vary several points by credit tier, loan term, and new vs used. Advertised teaser rates apply to top-tier credit on select models. A credit-union pre-qual takes minutes and gives this calculator a real number.
How much should I put down on a car?
The classic target is 20% — enough to cover first-year depreciation so you're never underwater. With less down, the gap between loan balance and car value is where gap insurance earns its keep. More down also directly shrinks the interest line.
Does this include insurance, registration, and fees?
No — it's the loan itself. Dealer documentation fees, registration, and title costs are typically paid up front or rolled in (ask which), and insurance is a separate recurring cost the 20/4/10 rule budgets alongside the payment.
Sources & References
- [1]Auto Loans — shopping and negotiation guidance — Consumer Financial Protection Bureau (CFPB)
Methodology. This calculator uses standard financial formulas used across the industry. It is reviewed and maintained by the Vast Calculators editorial team.
Last updated · July 11, 2026
Disclaimer. This tool provides estimates for general informational purposes only and is not a substitute for professional financial advice. Always consult a qualified financial advisor before making decisions about your finances.