Payment hides the price
Stretching a loan from 48 to 72 months can shrink your monthly payment ~25%—but often adds thousands in interest.
Term trade-off
Auto Loan Calculator with Tax, Trade-In, APR & Amortization
Inputs
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months
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Assumptions: Nominal APR with monthly compounding; equal monthly payments. Tax rules vary by region—use the toggle to match your locale.
Results
Enter your numbers and press Calculate.
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Auto Loan Term Comparison
Compare common auto loan terms using the same financed amount and APR. Shorter terms usually cost more each month but reduce total interest.
Enter your loan details and press Calculate to compare 36, 48, 60, 72, and 84 month terms.
How to Use This Auto Loan Calculator
- Enter the vehicle price before tax and fees.
- Add your down payment and trade-in value. If you still owe money on your trade-in, enter the payoff amount too.
- Enter sales tax, fees, APR, and loan term. Use the tax toggle if your state taxes the price after trade-in.
- Choose a start month if you want the estimated payoff date to match your buying timeline.
- Review your estimated payment, total interest, total cost, payoff date, and amortization schedule.
- Try different scenarios to compare 48, 60, 72, and 84 month terms.
How the Auto Loan Calculator Works
Release Updates
v1.1 (May 30, 2026)
- Added an auto loan term comparison table for 36, 48, 60, 72, and 84 month terms.
- Added amount owed on trade-in so negative equity and trade payoff scenarios are included in the financed amount.
- Added loan start month and estimated payoff date to make the result summary more complete.
- Added extra payment savings for interest saved and months saved.
- Added a Share / Copy Results button for saving or sharing a plain-text result summary.
We compute the financed amount from your inputs, then apply the standard amortization formula for monthly payments. Trade payoff is added back to the new loan because it represents the balance you still owe on the old vehicle. Everything runs client-side for privacy.
Financed Amount
taxable = price − (taxAfterTrade ? tradeIn : 0)
tax = max(0, taxable) × (taxRate/100)
financed = price + fees + tax − down − tradeIn + tradeOwed
Monthly Payment
With monthly rate r = APR/12/100 and term n months:
payment = financed × [ r / (1 − (1 + r)−n) ]
When you enter an extra monthly payment, we simulate early payoff month-by-month.
What Is a Good APR for an Auto Loan?
A good APR depends on your credit profile, whether the car is new or used, the loan term, lender, and market rates. In general, borrowers with stronger credit usually qualify for lower APRs, while longer terms and used vehicles may come with higher rates.
Use this calculator to compare offers from banks, credit unions, online lenders, and dealer financing. Even a one percentage point difference can change the total interest paid over the life of the loan.
Privacy
No data leaves your browser. There are no uploads or server calls.
Frequently Asked Questions
How is sales tax applied?
Many regions tax the price minus trade-in; others tax the full price. Use the toggle to match your area.
What compounding does APR use here?
We assume nominal APR with monthly compounding and equal monthly payments, which matches most auto loans.
Can I see the amortization schedule?
Yes. After you calculate, expand the amortization section to see month-by-month principal, interest, and balance.
Is my data private?
Yes—everything runs locally in your browser.
Should I choose a 60-month or 72-month auto loan?
A 72-month loan usually lowers the monthly payment, but it often increases total interest. A 60-month loan costs more per month but may reduce the total amount paid.
Does a larger down payment lower my car payment?
Yes. A larger down payment reduces the financed amount, which usually lowers both the monthly payment and total interest.
How does negative equity affect a car loan?
If you owe more on your trade-in than the car is worth, the difference may be added to the new loan. This increases the financed amount and can raise your monthly payment.
Can I pay off my auto loan early?
Many auto loans allow early payoff, but check your loan agreement for prepayment penalties or lender rules. Extra principal payments can reduce interest and shorten the loan term.
Should I finance taxes and fees or pay them upfront?
Financing taxes and fees increases the loan balance, which means you may pay interest on those costs. Paying them upfront can reduce the total cost of the loan.
Why is my estimated payment different from a lender quote?
Lender quotes may include specific fees, credit-based APRs, add-ons, warranties, insurance products, or local tax rules that differ from your calculator inputs.
What is the difference between APR and interest rate?
The interest rate is the cost of borrowing. APR may include the interest rate plus certain lender fees, making it useful for comparing offers.
Understanding Auto Loans: A Practical Guide
Auto loans finance a vehicle purchase by spreading the cost over time. Your monthly payment is driven by: price, down payment, trade-in value, trade payoff, APR, and term length. Taxes and fees affect the amount you actually finance. This section explains each piece and how to optimize your costs.
APR vs. Interest Rate
The interest rate is the cost of borrowing money. APR (Annual Percentage Rate) folds in the rate plus certain lender costs. Two loans with the same nominal rate can have different APRs if one includes extra charges. Our calculator uses APR with monthly compounding to match how most auto loans are quoted.
How Taxes and Fees Affect the Financed Amount
You don’t pay interest on the sticker price alone. You typically finance: price + tax + fees − down − trade-in + amount owed on trade-in. Whether sales tax applies before or after trade-in depends on your locale—use the toggle to match your rules.
Example: Price $30,000 · Trade-in $2,000 · Amount owed $0 · Down $3,000 · Fees $500 · Tax 8.875% (after trade-in)
Taxable base = $30,000 − $2,000 = $28,000 → Tax = $2,485.00
Financed = $30,000 + $2,485 + $500 − $3,000 − $2,000 + $0 = $27,985
Taxable base = $30,000 − $2,000 = $28,000 → Tax = $2,485.00
Financed = $30,000 + $2,485 + $500 − $3,000 − $2,000 + $0 = $27,985
Monthly Payment Formula, Simply Explained
With monthly rate r = APR/12/100 and n months, the payment is:
payment = financed × [ r / (1 − (1 + r)−n) ].
Lowering APR, increasing down payment, or shortening the term reduces interest paid over the life of the loan.
Early Payoff & Extra Payments
Extra principal payments reduce your balance sooner, shrinking future interest charges. Our calculator simulates this month-by-month. Check your lender’s policy for any prepayment penalties (many auto loans allow prepayment without fees).
Common Pitfalls to Avoid
- Focusing only on the monthly payment: A very long term can look affordable but increases total interest.
- Rolling fees into the loan: Convenience adds interest on top of fees. Paying fees upfront reduces total cost.
- Negative equity trade-ins: Owing more than your current car’s value can inflate the new loan.
- Skipping taxes/fees assumptions: Make sure the tax toggle matches your region to avoid under/overestimates.
Quick Optimization Checklist
- Compare APR offers from banks, credit unions, and dealers.
- Increase your down payment to shrink the financed amount.
- Pick the shortest term you can comfortably afford.
- Add a small monthly extra (e.g., $25–$50) to accelerate payoff.
5 Fun Facts about Auto Loans
Fees can earn interest too
Rolling a $600 doc fee into the loan at 8% over 72 months turns it into ~$745 paid—financing fees makes them grow.
Fee creep
Sales tax rules flip the math
Some regions tax after trade-in, others before. The difference can change your financed amount by hundreds.
Local twist
Extra $25 packs a punch
Adding $25/month on a 72-month, $25k loan at 7% can shave ~9 months off and save ~hundreds in interest.
Tiny extra, big save
Depreciation races your equity
Cars can lose 10%+ the moment you drive off. A small down payment plus a long term can leave you underwater early.
Equity risk