Auto Loan Calculator
Calculate monthly car payments including tax, down payment, and trade-in value.
How this is calculated
Monthly = loanAmount x r(1+r)n / ((1+r)n-1) where r = monthly rate, n = term months.
Frequently Asked Questions About Auto Loan Calculator
An auto loan calculator helps you determine your monthly car payment by factoring in the vehicle price, down payment, trade-in value, sales tax, interest rate, and loan term.
How much down payment should I put on a car?
A larger down payment reduces your monthly payment and total interest paid. Aim for at least 10-20% of the vehicle price. A 20% down payment significantly improves your loan terms and can help you avoid being underwater on the loan (owing more than the car's worth).
What interest rate should I expect for an auto loan?
Auto loan rates vary from 3-10%+ depending on credit score, down payment, loan term, and market conditions. Excellent credit typically qualifies for 3-5% rates, while average credit may see 6-8% rates. Shop around with banks and credit unions for the best rate.
Is a 48-month or 72-month loan better?
A 48-month loan has higher monthly payments but you pay less total interest and own the car sooner. A 72-month loan spreads payments over more time but costs significantly more in interest. Choose based on your budget and how long you typically keep vehicles.
How does sales tax affect my auto loan?
Sales tax is added to the vehicle price before calculating your loan amount. For example, a $35,000 car with 8% sales tax means you're financing $37,800. This tax amount varies by state and can significantly increase your monthly payment.
Should I use my trade-in for a down payment?
Yes, a trade-in reduces the amount you need to finance. The dealer applies your trade-in value as credit toward the new vehicle price. This is equivalent to a down payment and lowers your monthly car payment and total interest.
Can I pay off an auto loan early?
Most modern auto loans allow early repayment without penalty. Paying early saves you interest and reduces the total cost of the vehicle. However, some dealer-financed loans may have prepayment penalties, so check your agreement.