Calculate monthly auto loan payments, compare loan offers, and view amortization schedule.
| Year | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $5,985 | $1,605 | $4,380 | $20,870 |
| 2 | $5,985 | $1,293 | $4,692 | $16,178 |
| 3 | $5,985 | $959 | $5,026 | $11,152 |
| 4 | $5,985 | $601 | $5,384 | $5,768 |
| 5 | $5,985 | $218 | $5,768 | $0 |
Calculations are estimates. Actual loan terms depend on your credit score, income, and lender. Dealer financing may include markup. This is not financial advice.
A car loan is a fixed-payment amortizing loan: the amount financed — vehicle price minus down payment and trade-in, plus any sales tax rolled into the loan — is repaid in equal monthly installments while interest accrues each month on the remaining balance. Experian puts the average 2026 new-car APR at about 6.4% and the used-car APR near 11.4%, so a single point of rate or a year of term moves the payment by tens of dollars. Early payments are interest-heavy (the first installment on a $25,250 loan at 6.9% carries about $145 of interest), and only later does the balance fall quickly. Down payment and trade-in matter twice: they shrink the principal and therefore the total interest paid.
Left: how the financed amount is built from price minus down payment and trade-in, plus rolled-in sales tax. Right: the same loan amortizing — the first payments are mostly interest, the last mostly principal.
Marcus is buying a $35,000 car with a $7,000 down payment and a $5,000 trade-in at 6.9% APR over 60 months. His state charges 7.5% sales tax, which he rolls into the loan.
Car loan payment depends on price, down payment, APR, and term. Enter these values to see your exact monthly payment and total interest paid over the loan.
FreeToolHub Car Loan Calculator is a free browser-based tool that computes monthly auto loan payments and total interest, no signup.
Calculate exact monthly payments and total interest before you buy. Free, instant.
The Car Loan Calculator computes the monthly payment, total interest, and full cost of financing a vehicle. Enter vehicle price, down payment, and trade-in value; choose an interest rate and a term from 24 to 84 months; set your local sales tax rate and decide whether to roll that tax into the financed amount. The engine returns the loan amount, monthly payment via the standard amortization formula, total interest, total of payments, and total cost including cash upfront. A yearly amortization table shows each year's payment, interest, and remaining balance, and a second-loan panel compares competing offers side by side.
Car buyers negotiating at a dealership use it to sanity-check the finance manager's numbers before signing, since dealer packages often bury rate markup. Shoppers comparing a bank preapproval against credit-union financing enter both as Loan 1 and Loan 2 and see the total-interest difference in dollars. Lease-versus-buy analyzers and borrowers stretching toward 72- or 84-month terms can see exactly how much longer terms cost in interest. Sellers pricing a trade-in get the tax angle quantified. First-time buyers learn how down payment size moves the monthly figure. Anyone refinancing an existing auto loan can benchmark the new offer against the current one.
(1) The taxable base is vehicle price minus trade-in value, multiplied by your sales tax rate—most states credit the trade-in, shrinking the tax bill. (2) The loan amount equals price minus down payment minus trade-in value, plus sales tax if you enabled that toggle, and the monthly payment applies the standard amortization formula: loan × r(1+r)^n ÷ ((1+r)^n − 1), where r is the annual rate divided by 12 and n is the term in months. (3) Each simulated month splits the payment into interest on the outstanding balance and principal that reduces it; the schedule reports one row per year, and the comparison panel declares which offer saves more.
In most US states, sales tax applies only to the difference between the new car's price and your trade-in credit, a rule called trade-in tax relief. This calculator implements it directly: a $35,000 car traded against a $15,000 vehicle at 7.5% tax owes $1,500, not $2,625—the $15,000 credit saves $1,125 in tax. That is real money a private sale cannot match, since selling the old car yourself means paying full tax on the entire new-vehicle price. A handful of states cap or exclude this credit, so verify local rules; the sales-tax field accepts any rate, including zero, and the toggle decides whether the tax is financed or paid in cash.
The 20/4/10 heuristic is the honest benchmark: 20% down, a loan no longer than 4 years, and total transportation cost under 10% of gross income. Dealers qualify you on payment size alone and will happily stretch to 72 or 84 months to hit a monthly number — but every extra year adds interest and pushes you underwater on the loan. Run the total-interest column in this calculator against a 60-month vs 72-month term to see what the smaller payment really costs.
Every added year lowers the monthly payment but raises total interest roughly linearly. On a $30,000 loan at 7%, 60 months costs about $5,610 in interest while 72 months costs about $6,780 — and 84 months pushes past $7,900, by which point a depreciating car is worth far less than you owe. The calculator lays out payment vs total interest per term so the trade is priced, not guessed.
Yes — that is what the dealer will do. Sales tax, title/registration/doc fees, and any negative equity from a trade-in all roll into the amount financed unless you pay them upfront. Financing them means paying interest on the tax; paying them in cash at signing keeps the loan principal aligned with the actual vehicle price. The calculator separates vehicle price from add-ons so you can see both structures side by side.
Both cut interest, but differently. Extra principal payments shorten the loan and save interest with flexibility preserved; a bigger down payment shrinks the loan from day one and protects you from negative equity — the moment a new car loses 20% of its value in year one. On a $35,000 car, moving from $3,000 to $7,000 down saves roughly $900-$1,200 in interest over 60 months and, more importantly, keeps you above water until resale.
A $35,000 car at 7% APR costs $693/month over 48 months ($8,264 total interest) versus $558/month over 72 months ($13,176 total interest). The 72-month term saves $135/month but costs $4,912 more in interest. This calculator shows the exact trade-off for any price, rate, and term combination.
Financial advisors recommend keeping total car costs (payment + insurance + fuel) under 15% of gross monthly income. On a $6,000/month salary, that caps your payment around $500-$600. Enter your budget here to see the maximum vehicle price at current rates before you step into the dealership.
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