Auto Loan Calculator
Calculate your monthly car payment including sales tax, down payment, and trade-in value. See total interest and total cost of ownership. See also Loan Calculator and Car Loan EMI Calculator.
How to Calculate Auto Loan Payments
To calculate your auto loan payment, start with the vehicle price and add sales tax. Subtract your down payment and trade-in value to get the loan amount. Then apply the standard loan payment formula using the interest rate and loan term. Most auto loans are simple amortizing loans with fixed monthly payments. The loan term typically ranges from 36 to 84 months, with shorter terms resulting in higher payments but less total interest.
Auto Loan Payment Formula
Loan Amount = (Vehicle Price + Sales Tax) − Down Payment − Trade-In
EMI = P × r × (1 + r)^n / ((1 + r)^n − 1)
Where:
P = Loan amount
r = Monthly interest rate (APR / 12 / 100)
n = Loan term in months
Example
Vehicle: $30,000, Down: $5,000, Trade-In: $0, Tax: 7%
Sales Tax = $30,000 × 0.07 = $2,100
Loan Amount = $30,000 + $2,100 − $5,000 = $27,100
Rate: 5.5% APR, Term: 60 months
r = 5.5 / 12 / 100 = 0.004583
Monthly Payment = $518.17
Total Interest = $3,990.20
Total Cost = $30,000 + $2,100 + $3,990.20 = $36,090.20
Auto Loan Comparison Table
| Vehicle Price | Down | Rate | Term | Monthly | Total Interest |
|---|---|---|---|---|---|
| $20,000 | $3,000 | 5% | 48 mo | $391.43 | $1,788.64 |
| $25,000 | $5,000 | 5.5% | 60 mo | $382.02 | $2,921.20 |
| $30,000 | $5,000 | 6% | 60 mo | $483.32 | $3,999.20 |
| $35,000 | $7,000 | 5% | 72 mo | $452.44 | $4,575.68 |
| $40,000 | $10,000 | 4.5% | 60 mo | $559.58 | $3,574.80 |
| $50,000 | $10,000 | 6% | 72 mo | $664.81 | $7,866.32 |
Frequently Asked Questions
What is a good interest rate for an auto loan?
As of 2024, good rates for new cars range from 4% to 7% depending on credit score. Excellent credit (750+) can qualify for rates under 5%. Used car rates are typically 1-2% higher. Credit union rates are often lower than bank or dealer financing.
Should I choose a longer loan term for lower payments?
Longer terms (72-84 months) lower monthly payments but significantly increase total interest. A $30,000 loan at 6% costs $3,999 in interest over 60 months but $5,797 over 72 months. Longer terms also risk being "upside down" (owing more than the car is worth).
How much should I put down on a car?
Financial experts recommend at least 20% down on a new car and 10% on a used car. A larger down payment reduces the loan amount, lowers monthly payments, reduces total interest, and helps avoid negative equity.
Is sales tax included in the loan?
It depends on the state and lender. Some states require sales tax to be paid upfront, while others allow it to be rolled into the loan. This calculator includes sales tax in the loan amount by default, which is the most common scenario.