Auto loan calculator

Enter the vehicle price and your down payment, then the details that change the amount you finance:

• Trade-in value and any amount still owed on the trade-in (negative equity is added to the new loan),
• a cash rebate from the manufacturer,
• your sales tax rate and title, registration and dealer fees, and whether you pay them upfront or finance them.

In most states sales tax is charged on the price minus your trade-in; tick "tax on full price" if your state taxes the full price. The calculator shows the monthly payment, total interest, the amount financed, what you pay upfront, the sales tax and the total cost of the car: everything you pay, including the trade-in you hand over. Extra payments and the payment schedule work the same way as in the loan calculator. All numbers stay in your browser. This is an estimate, not a loan offer or financial advice.

Car price $35,000, down payment $5,000, APR 7%, term 60 months.

1. Amount financed: 35,000 − 5,000 = $30,000.
2. Monthly rate: 7 / 12 / 100 ≈ 0.005833.
3. Payment: M = P × r × (1 + r)^n / ((1 + r)^n − 1) ≈ $594.04 per month.
4. Total of payments ≈ $35,642, so total interest ≈ $5,642.

Stretch the same loan to 72 months and the payment falls to about $511, but interest rises to about $6,826. A shorter term saves money as long as the payment fits your budget.

The same $35,000 car with $5,000 down at 7% for 60 months, now with 7% sales tax and $800 in title, registration and dealer fees, both financed:

1. Sales tax: 7% × $35,000 = $2,450.
2. Amount financed: 35,000 − 5,000 + 2,450 + 800 = $33,250.
3. Monthly payment: $658.39, with $6,253.39 of interest.
4. Total cost of the car: $44,503.39.

Now add an $8,000 trade-in with $2,000 still owed on it, a $1,000 rebate and $3,000 down. Tax is charged on $27,000 (price minus trade-in), so it falls to $1,890; you finance $27,690 and pay $548.30 a month. The $2,000 you still owed on the old car is rolled into the new loan, which is why paying off negative equity first, when you can, saves interest.

Term	Payment on $30,000 at 7%	Total interest
36 months	$926.31	$3,347
48 months	$718.39	$4,483
60 months	$594.04	$5,642
72 months	$511.47	$6,826

Cars lose value quickly, especially in the first years. With a long term and a small down payment, you can end up owing more than the car is worth (being "upside down"). That is a problem if you want to sell or trade in early, or if the car is totaled. A down payment of 10–20% and a term you can pay off before the car ages much reduce that risk.

• Check your credit first. Your credit score has a big effect on the APR you are offered.
• Get preapproved with a bank or credit union before shopping, so you can compare it with dealer financing.
• Compare APR, not just the monthly payment. A lower payment from a longer term can cost more overall.
• Watch add-ons. Extended warranties, GAP coverage and service plans rolled into the loan raise the amount financed.

For other installment loans, use the general loan calculator; for fuel costs, try the gas mileage calculator.

Read the retail installment contract carefully and check that these match what you agreed to:

• the amount financed, which should equal the price plus any taxes and fees you chose to finance, minus your down payment and trade-in;
• the APR and the finance charge (the total interest and certain fees), which federal law requires the lender to disclose;
• the number of payments and the payment amount;
• any add-on products and their prices.
• whether there is a prepayment penalty if you pay the loan off early.

Plug the contract numbers into this calculator. If the payment it shows is lower than the contract payment, ask what is causing the difference before you sign. Taking the contract home overnight to review it is reasonable; a good offer will still be there tomorrow.