Auto loan calculator

What a car loan costs each month and in total: the price, your down payment and trade-in, sales tax, the interest rate and the term.

Monthly payment

$491.03

for 60 months · $4,782 in interest

Financed $24,680
Total paid $29,462
Car costs $41,462 with interest

You finance $24,680.00 over 60 months at 7.2%: your payment is $491.03 a month. In all you pay back $29,461.80, of which $4,781.80 is interest. Counting your down payment and trade-in of $12,000.00, the car costs $41,461.80 in all, including tax, fees and interest.

Out of every $100 you pay back, about $16 is interest. A shorter term would raise the payment but cut the interest; a longer one does the opposite, and a car that loses value fast can leave you owing more than it is worth.

The APR is not the only cost: fees, insurance and add-ons the dealer sells you can change the real price. Compare offers on the APR and ask for the total amount you will pay.
Sales tax and fees differ by state, and by how your state taxes the trade-in. The rate here is the one you typed in.

What the car costs in total

Down payment and trade-in$12,00029%
Loan principal$24,68060%
Interest$4,78212%

I’m not an accountant or a financial advisor. This is an estimate, for information only. Check with a professional before you decide.

Your numbers

example: change the numbers

Vehicle price

The price you agree with the seller, before tax and fees.

Down payment

The cash you pay up front. A larger down payment means a smaller loan.

Trade-in value

What the dealer gives you for your old car. Enter 0 if you are not trading one in. If you still owe money on it, use only the part that is yours.

Sales tax

Your state and local sales tax on a car. The calculator applies it to the price minus the trade-in. States differ in how they tax the trade-in, so check yours; enter 0 to leave tax out.

Fees you finance

Title, registration and dealer fees that you add to the loan. Enter 0 if you pay them in cash.

Interest rate (APR)

The yearly rate on the loan. The example is not today’s market rate: use the rate in your offer.

Loan term

The number of monthly payments. A longer term lowers the payment but raises the interest.

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The calculation
	Vehicle price	$35,000.00
+	Sales tax6% of the price minus the trade-in	$1,680.00
−	Down payment	$5,000.00
−	Trade-in	$7,000.00
=	Amount financed	$24,680.00
	Monthly payment60 payments at 7.2%	$491.03
	Total of payments	$29,461.80
	Total interest	$4,781.80

How it works

Start from the price. Add sales tax, which the calculator applies to the price minus your trade-in, and any fees you finance. Subtract your down payment and trade-in: that is the amount you borrow.
The monthly payment is the fixed amount that pays the loan off over its term: loan × r ÷ (1 − (1 + r)^−n), where r is the yearly rate divided by 12 and n is the number of months.
Multiply the payment by the number of months for the total you pay back. The interest is the total minus the amount you borrowed.

Worked example

A $35,000 car with a $5,000 down payment and a $7,000 trade-in, 6% sales tax on $28,000 ($1,680): $24,680 financed at 7.2% for 60 months. Payment $491.03 a month, total $29,461.80, interest $4,781.80.

Sources

Text checked on October 12, 2026

Good to know

A longer loan lowers your monthly payment, but you pay more interest in total. The CFPB’s example of a $20,000 loan at 4.75% shows it: $597 a month and $1,498 of interest over 36 months, $320 a month and $3,024 over 72. Compare the terms above.
A larger down payment or trade-in shrinks the amount you borrow, which cuts both the payment and the interest.
The interest rate on your offer depends on your credit, the loan term and the lender. Getting a pre-approved offer from a bank or credit union before you visit a dealer gives you something to compare.
Dealer add-ons, extended warranties and insurance sold with the loan are extra costs. Ask what is included in the price you are quoted.
If your trade-in is worth less than you owe on it, the difference is usually added to the new loan. This calculator does not include that.
This is not an offer of credit: your lender’s contract has the real rate, fees and total.

Frequently asked questions

How is a car loan payment calculated?

The payment is the fixed amount that pays off the loan over its term: loan × r ÷ (1 − (1 + r)^−n), where r is the monthly rate (the APR divided by 12) and n is the number of months.

How much interest will I pay on a car loan?

The total of your payments minus the amount you borrowed. On a $24,680 loan at 7.2% for 60 months it is $4,781.80. Use the calculator for your own numbers.

Is a 72-month car loan a bad idea?

It lowers the payment, but the interest is higher: the CFPB’s example of a $20,000 loan at 4.75% costs $1,498 in interest over 36 months and $3,024 over 72, more than twice as much. Some experts recommend a loan of five years or less, because longer loans are more likely to leave you owing more than the car is worth.

Does the down payment lower the interest?

Yes. A larger down payment means you borrow less, so you pay less interest and have a lower payment.

Is sales tax included in the loan?

In this calculator it is added to the amount you finance. In real life you can usually pay it up front instead, which lowers the loan.