Auto Loan Calculator
Calculate your monthly auto loan payment including trade-in value, down payment, sales tax, and extended warranty. Compare loan terms from 36 to 84 months for new and used vehicles.
Monthly Payment
$635/mo
Loan Amount
$32,450
Total Interest
$5,645
Total Cost
$43,095
Sales Tax
$2,450
Amortization Schedule (First 12 Months)
| Month | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $635 | $176 | $459 | $31,991 |
| 2 | $635 | $173 | $462 | $31,529 |
| 3 | $635 | $171 | $464 | $31,065 |
| 4 | $635 | $168 | $467 | $30,598 |
| 5 | $635 | $166 | $469 | $30,129 |
| 6 | $635 | $163 | $472 | $29,658 |
| 7 | $635 | $161 | $474 | $29,183 |
| 8 | $635 | $158 | $477 | $28,706 |
| 9 | $635 | $155 | $479 | $28,227 |
| 10 | $635 | $153 | $482 | $27,745 |
| 11 | $635 | $150 | $485 | $27,260 |
| 12 | $635 | $148 | $487 | $26,773 |
π‘ How to Use the Auto Loan Calculator
How to Calculate an Auto Loan Payment
An auto loan payment is calculated using the standard amortizing loan formula (PMT) β the same formula used by every bank and credit union in the United States:
Where: P = loan amount, r = monthly interest rate (APR/12), n = number of monthly payments
Step 1: Determine the Loan Amount
Your loan amount starts with the vehicle price (after negotiation) plus any add-ons β extended warranty, GAP insurance, accessories. Then add sales tax (varies by state, 0%β10.25%). Subtract your trade-in value and down payment to get the net loan amount.
Step 2: Understand Interest Rates
Auto loan interest rates depend on your credit score, loan term, new vs. used, and the lender. As of 2026:
| Credit Score | New Car APR | Used Car APR |
|---|---|---|
| Excellent (750+) | 4.5%β6.0% | 5.5%β7.5% |
| Good (700β749) | 6.0%β8.0% | 7.5%β10.0% |
| Fair (650β699) | 8.0%β12.0% | 10.0%β15.0% |
| Poor (below 650) | 12.0%β18.0% | 15.0%β22.0% |
Worked Example
$35,000 new car, $5,000 down, 7% sales tax, 6.5% APR, 60 months:
- Subtotal with tax: $35,000 Γ 1.07 = $37,450
- Loan amount: $37,450 β $5,000 = $32,450
- Monthly payment: $634/mo
- Total interest: $5,613
- Total cost: $43,063
The Benefits of Auto Loans
- Spread the cost of a vehicle over time β preserving your savings
- Build credit history with on-time payments
- You own the car at payoff β no mileage restrictions
- 0% APR promotions from manufacturers can make financing free
The Hidden Costs of Car Ownership
Your monthly payment is only part of the total cost. US car owners should budget for:
- Insurance: average $1,771/year ($148/mo) β varies dramatically by state
- Fuel: average $150β$300/month depending on vehicle and driving
- Maintenance: $100β$200/month (oil changes, tires, brakes, inspections)
- Registration & fees: $100β$500/year depending on state
- Depreciation: new cars lose 20% in year 1, ~60% over 5 years