Car Loan Payment Calculator
Estimate your monthly auto loan payments and total interest cost
12 Months (1 Year)
24 Months (2 Years)
36 Months (3 Years)
48 Months (4 Years)
60 Months (5 Years)
72 Months (6 Years)
84 Months (7 Years)
Estimated Monthly Payment
$0.00
Total Loan Amount
$0.00
Total Interest
$0.00
Total Tax Paid
$0.00
Total Cost of Car
$0.00
How to Use the Car Loan Payment Calculator
Purchasing a vehicle is a major financial decision. Our car loan calculator helps you break down the true cost of ownership by including taxes, trade-ins, and interest. Here is how to use each field effectively:
- Vehicle Price: The sticker price of the car or the negotiated price before any fees.
- Down Payment: The cash you are paying upfront. A higher down payment reduces your monthly cost and interest paid.
- Trade-in Value: The amount a dealer gives you for your current vehicle. In many states, this can also reduce the sales tax you owe.
- Interest Rate: The Annual Percentage Rate (APR) provided by your lender.
- Loan Term: Common terms are 60 or 72 months. While longer terms lower your monthly payment, you will pay more in total interest.
Real-World Example Calculation
Imagine you are buying a car for $30,000 with a $5,000 down payment and a $3,000 trade-in. If your interest rate is 5% for 60 months and your state tax is 7%:
- Tax is calculated on the price: $30,000 * 0.07 = $2,100.
- Loan Amount: $30,000 + $2,100 – $5,000 – $3,000 = $24,100.
- Using the amortization formula, your monthly payment would be approximately $454.80.
- The total interest paid over 5 years would be roughly $3,188.
Tips for a Better Car Loan
To secure the best deal, check your credit score before applying. A score above 700 usually qualifies for the lowest interest rates. Additionally, consider getting pre-approved by a credit union or bank before visiting the dealership to use as leverage during negotiations.