Calculate auto loan payments including vehicle price, down payment, trade-in value, sales tax, and fees. See total cost of ownership over the loan term.
Buying a vehicle is one of the largest purchases most people make after a home. The auto loan calculator helps you understand exactly what your car will cost — not just the sticker price, but the true total cost including interest, sales tax, and fees.
Most car buyers focus on the monthly payment, but the real question is how much you pay over the life of the loan. A longer term lowers the monthly payment but dramatically increases total interest. A larger down payment or trade-in reduces the financed amount, saving thousands in interest.
This calculator accounts for all the factors: vehicle price, down payment, trade-in value, sales tax, dealer fees, interest rate, and loan term. You get the monthly payment, total interest, and complete cost of ownership — the information you need to negotiate confidently at the dealership. Knowing your numbers before walking in prevents common tactics like stretching the loan term to lower the payment while dramatically increasing total interest.
Dealerships focus on monthly payments to distract from total cost. This calculator shows both — so you can see how extending a loan from 48 to 72 months drops the payment but adds thousands in interest. Armed with this data, you negotiate from a position of knowledge. That clarity can easily save you a thousand dollars or more on a single purchase.
Amount Financed = (Vehicle Price + Sales Tax + Fees) − Down Payment − Trade-In. Monthly Payment M = Financed × r(1+r)^n / ((1+r)^n − 1). Total Cost = (M × n) + Down Payment + Trade-In credit used.
Result: $541/mo — $5,413 total interest — $37,460 total cost
A $35,000 vehicle with 7% sales tax ($2,450) and $500 fees totals $37,950. Subtract $5,000 down and $3,000 trade-in for $29,950 financed. At 6.5% for 60 months, the payment is $586. Total payments are $35,129 plus $8,000 down/trade-in for $43,129 total cost, with $5,179 in interest.
The sticker price is just the beginning. Sales tax (typically 4–10% of the price), dealer documentation fees ($200–$800), registration fees, and optional add-ons all increase the amount you finance. Each additional dollar financed costs more over time due to interest.
Dealers love to offer 72- and 84-month loans because the lower payments make expensive vehicles seem affordable. But a $35,000 car financed at 6.5% costs about $4,100 in interest over 48 months versus $7,700 over 72 months — nearly double. Worse, long terms increase the risk of negative equity.
Know your numbers before entering the dealership. Get pre-approved for financing, research the fair purchase price, and know your trade-in value. Negotiate the purchase price first, then compare the dealer's financing offer to your pre-approval. Choose whichever saves more in total cost.
Rates vary by credit score, term, and whether the vehicle is new or used. As of recent years, excellent credit may get 4–6% for new cars and 5–7% for used. Good credit sees 6–9%. Fair credit may face 9–14%. Subprime borrowers can see 14–25%. Shorter terms typically get lower rates.
Aim for at least 20% on a new car and 10% on a used car. This reduces your financed amount, lowers your payment, and helps you avoid being upside-down (owing more than the car is worth). A trade-in can count toward your down payment.
In most states, yes — your trade-in value is subtracted from the purchase price before sales tax is calculated. This can save hundreds or thousands in tax. However, rules vary by state, so check your local regulations.
The shortest term you can comfortably afford. A 48-month loan costs significantly less in total interest than a 72-month loan. The general rule: if you cannot afford the payment on a 60-month or shorter loan, the car may be too expensive for your budget.
Buying is generally cheaper long-term — you own the vehicle after the loan is paid off. Leasing offers lower monthly payments but you return the car with nothing to show for the payments. Use our Auto Lease vs Buy Calculator for a detailed comparison.
Yes. If your credit improves or rates drop, refinancing can lower your rate and payment. You will need the current payoff amount, and the new lender will assess the vehicle value. Refinancing makes the most sense in the first half of the loan when interest charges are highest.