Auto Loan Calculator
Calculate your monthly car payment including trade-in value, down payment, and sales tax. Find out how much car you can afford.
Cost Breakdown
How Auto Loan Payments Work
An auto loan payment depends on the total amount borrowed, the interest rate, and the loan term. Your loan amount is the vehicle price plus sales tax, minus your down payment and trade-in value. A larger down payment or trade-in reduces your loan amount and monthly payment.
Frequently Asked Questions
How is my auto loan payment calculated?
Your monthly payment is calculated using the loan amount (vehicle price + tax - down payment - trade-in), interest rate, and loan term. The formula is M = P × [r(1+r)^n] / [(1+r)^n - 1].
Should I include sales tax in my auto loan?
In most states, sales tax is due at purchase. You can pay it upfront or roll it into your loan. Rolling it in increases your loan amount and total interest paid, but reduces your upfront cost.
What is a good interest rate for an auto loan?
Auto loan rates vary based on credit score, loan term, and whether the car is new or used. As of 2024, excellent credit (750+) may qualify for 4-6% APR, while subprime borrowers may see 10%+ rates.
Is a longer auto loan term better?
Longer terms (72-84 months) lower your monthly payment but increase total interest paid. Shorter terms (36-48 months) have higher payments but save money overall. Aim for the shortest term you can comfortably afford.
Disclaimer
This calculator is for informational purposes only and should not be considered financial advice. Consult with a qualified financial professional before making any financial decisions.