finance calculator

Auto Loan Calculator

Estimate car payments, total financing cost, and interest.

Formula Verified by Dr. Elizabeth Vance, PhD

Quick actions: Save inputs, view saved runs, print, share, or export results

Saved Runs

Inputs

Vehicle price$

Down payment$

Trade-in value$

Loan term (months)

Interest rate%

Sales tax%

Title and fees$

Results

Monthly payment

$602

Amount financed$30,750

Sales tax$2,450

Total interest$5,350

Total vehicle cost$43,100

Bookmark this Auto Loan Calculator

Car shopping involves comparing multiple dealer offers. Save this tool to quickly audit financing terms, fees, and payments.

Formula

Auto loan payment

Amount financed = price + tax + fees - down payment - trade-in

The financed amount is passed into the standard amortizing loan payment formula.

Step by step

How the calculation works

1Calculate sales tax and add registration or title fees.
2Subtract down payment and trade-in value to find amount financed.
3Convert APR to a monthly rate and calculate the monthly payment.
4Add interest to vehicle cost to estimate the long-term cost of ownership.

Example

Example auto loan

A $35,000 vehicle with $7,000 down, 7% sales tax, $300 fees, and a 6.5% APR for 60 months has an estimated payment near $602.

Related guides

Learn more about this calculation

Guide

Auto Loan Financing: Compare Payment and Total Cost

Compare auto financing by amount financed, annual rate, term, monthly payment, and total interest, then include ownership costs outside the loan.

Guide

Loan Payment Guide: Formula, Interest, and Total Cost

Learn how fixed loan payments are calculated, why term length changes total interest, and how the DTC loan calculator matches amortization math.

Period	Payment	Principal	Interest	Balance
Month 1	$602	$435	$167	$30,315
Month 2	$602	$437	$164	$29,877
Month 3	$602	$440	$162	$29,438
Month 4	$602	$442	$159	$28,995
Month 5	$602	$445	$157	$28,551
Month 6	$602	$447	$155	$28,104
Month 7	$602	$449	$152	$27,654
Month 8	$602	$452	$150	$27,203
Month 9	$602	$454	$147	$26,748
Month 10	$602	$457	$145	$26,291
Month 11	$602	$459	$142	$25,832
Month 12	$602	$462	$140	$25,370
Month 13	$602	$464	$137	$24,906
Month 14	$602	$467	$135	$24,439
Month 15	$602	$469	$132	$23,970
Month 16	$602	$472	$130	$23,498
Month 17	$602	$474	$127	$23,024
Month 18	$602	$477	$125	$22,547
Month 19	$602	$480	$122	$22,068
Month 20	$602	$482	$120	$21,585
Month 21	$602	$485	$117	$21,101
Month 22	$602	$487	$114	$20,613
Month 23	$602	$490	$112	$20,123
Month 24	$602	$493	$109	$19,631
Month 25	$602	$495	$106	$19,135
Month 26	$602	$498	$104	$18,637
Month 27	$602	$501	$101	$18,137
Month 28	$602	$503	$98	$17,633
Month 29	$602	$506	$96	$17,127
Month 30	$602	$509	$93	$16,618
Month 31	$602	$512	$90	$16,106
Month 32	$602	$514	$87	$15,592
Month 33	$602	$517	$84	$15,075
Month 34	$602	$520	$82	$14,555
Month 35	$602	$523	$79	$14,032
Month 36	$602	$526	$76	$13,506
Month 37	$602	$528	$73	$12,978
Month 38	$602	$531	$70	$12,447
Month 39	$602	$534	$67	$11,912
Month 40	$602	$537	$65	$11,375
Month 41	$602	$540	$62	$10,835
Month 42	$602	$543	$59	$10,292
Month 43	$602	$546	$56	$9,746
Month 44	$602	$549	$53	$9,197
Month 45	$602	$552	$50	$8,646
Month 46	$602	$555	$47	$8,091
Month 47	$602	$558	$44	$7,533
Month 48	$602	$561	$41	$6,972
Month 49	$602	$564	$38	$6,408
Month 50	$602	$567	$35	$5,841
Month 51	$602	$570	$32	$5,271
Month 52	$602	$573	$29	$4,698
Month 53	$602	$576	$25	$4,122
Month 54	$602	$579	$22	$3,542
Month 55	$602	$582	$19	$2,960
Month 56	$602	$586	$16	$2,374
Month 57	$602	$589	$13	$1,786
Month 58	$602	$592	$10	$1,194
Month 59	$602	$595	$6	$598
Month 60	$602	$598	$3	$0

Period

Payment

Principal

Interest

Balance

Month 1

$602

$435

$167

$30,315

Month 2

$602

$437

$164

$29,877

Month 3

$602

$440

$162

$29,438

Month 4

$602

$442

$159

$28,995

Month 5

$602

$445

$157

$28,551

Month 6

$602

$447

$155

$28,104

Month 7

$602

$449

$152

$27,654

Month 8

$602

$452

$150

$27,203

Month 9

$602

$454

$147

$26,748

Month 10

$602

$457

$145

$26,291

Month 11

$602

$459

$142

$25,832

Month 12

$602

$462

$140

$25,370

Month 13

$602

$464

$137

$24,906

Month 14

$602

$467

$135

$24,439

Month 15

$602

$469

$132

$23,970

Month 16

$602

$472

$130

$23,498

Month 17

$602

$474

$127

$23,024

Month 18

$602

$477

$125

$22,547

Month 19

$602

$480

$122

$22,068

Month 20

$602

$482

$120

$21,585

Month 21

$602

$485

$117

$21,101

Month 22

$602

$487

$114

$20,613

Month 23

$602

$490

$112

$20,123

Month 24

$602

$493

$109

$19,631

Month 25

$602

$495

$106

$19,135

Month 26

$602

$498

$104

$18,637

Month 27

$602

$501

$101

$18,137

Month 28

$602

$503

$98

$17,633

Month 29

$602

$506

$96

$17,127

Month 30

$602

$509

$93

$16,618

Month 31

$602

$512

$90

$16,106

Month 32

$602

$514

$87

$15,592

Month 33

$602

$517

$84

$15,075

Month 34

$602

$520

$82

$14,555

Month 35

$602

$523

$79

$14,032

Month 36

$602

$526

$76

$13,506

Month 37

$602

$528

$73

$12,978

Month 38

$602

$531

$70

$12,447

Month 39

$602

$534

$67

$11,912

Month 40

$602

$537

$65

$11,375

Month 41

$602

$540

$62

$10,835

Month 42

$602

$543

$59

$10,292

Month 43

$602

$546

$56

$9,746

Month 44

$602

$549

$53

$9,197

Month 45

$602

$552

$50

$8,646

Month 46

$602

$555

$47

$8,091

Month 47

$602

$558

$44

$7,533

Month 48

$602

$561

$41

$6,972

Month 49

$602

$564

$38

$6,408

Month 50

$602

$567

$35

$5,841

Month 51

$602

$570

$32

$5,271

Month 52

$602

$573

$29

$4,698

Month 53

$602

$576

$25

$4,122

Month 54

$602

$579

$22

$3,542

Month 55

$602

$582

$19

$2,960

Month 56

$602

$586

$16

$2,374

Month 57

$602

$589

$13

$1,786

Month 58

$602

$592

$10

$1,194

Month 59

$602

$595

$598

Month 60

$602

$598

How to understand and use this calculator

The Components of a Car Purchase Transaction

An auto loan is a secured installment agreement backed by the vehicle as collateral. To calculate the true monthly cost of a car, you must combine the vehicle price with local taxes, dealer fees, finance rates, and term lengths.

Vehicle Price: The negotiated price of the car (often referred to as the out-the-door price, excluding financing costs).

Down Payment & Trade-In: The cash down payment plus the net trade-in value of your current car. Both directly reduce the principal balance you need to borrow.

Sales Tax & Registration: Local sales taxes and state title/registration fees. Dealers often roll these fees directly into the loan, meaning you pay interest on taxes.

Dealer Fees: Document fees (doc fees), prep fees, or destination charges. Always check these charges, as they can inflate the loan principal.

The Auto Loan Amortization Formula

The monthly payment is calculated using the standard amortizing loan formula, applied to the Net Financed Amount:

$$PMT = A_{\text{financed}} \times \frac{r(1 + r)^n}{(1 + r)^n - 1}$$

Where the Net Financed Amount is calculated as:

$$A_{\text{financed}} = \text{Vehicle Price} + \text{Sales Tax} + \text{Dealer Fees} - \text{Down Payment} - \text{Trade-In Value}$$

This formula shows why trading in a car with negative equity (owing more than the car is worth) inflates the payment. The negative balance is added to the new loan, increasing the financed amount.

The Risk of Long-Term Auto Loans (Negative Equity)

In recent years, 72-month and 84-month auto loans have become common as buyers seek lower monthly payments. However, vehicles are depreciating assets that lose value rapidly.

Taking out a long-term loan increases the risk of becoming upside down (owing more on the loan than the vehicle is worth). If the car is totaled in an accident or you need to sell it, you will have to pay the lender cash to cover the negative equity gap.

Negotiating the Out-The-Door Price vs. Monthly Payment

Dealers often focus the negotiation strictly on the "monthly payment." By stretching the loan term or hiding fees, they can meet your monthly payment target while increasing the total cost of the vehicle.

Always negotiate the Out-The-Door (OTD) Price first. Once the OTD price is finalized, evaluate financing terms, APR, and total interest separately to ensure you get the best deal.

Related concepts

Amount Financed

The total loan principal borrowed after adding taxes/fees and subtracting cash down/trade-in.

GAP Insurance

Coverage that pays the difference between the vehicle value and the remaining loan balance in a total loss.

Negative Equity

The financial state of owing more on a vehicle loan than the asset's current market value.

Frequently Asked Questions

Does the calculator include sales tax?+

Yes. The calculator applies your local sales tax rate to the vehicle price and adds it to the total loan principal before down payment subtractions.

What is the "Out-The-Door" price?+

The Out-The-Door (OTD) price is the total cost to purchase the vehicle, including the car price, sales tax, dealer doc fees, registration, and title fees, before financing.

Why is the amount financed different from the vehicle sticker price?+

The amount financed is the actual balance borrowed. It includes the vehicle price, taxes, and fees, minus your down payment and net trade-in credit.

Should I choose a 72-month or 84-month car loan?+

Avoid long terms if possible. While they lower the monthly payment, they keep you in debt longer, increase lifetime interest, and increase the risk of negative equity.

What is negative equity on a trade-in?+

Negative equity (being "underwater") means you owe more on your current car loan than the vehicle's actual trade-in value. This deficit is typically rolled into the new loan.

What is GAP insurance and do I need it?+

Guaranteed Asset Protection (GAP) insurance covers the difference between the actual cash value of the vehicle and the remaining loan balance if the car is totaled or stolen.

How much should I put down on a car?+

A standard recommendation is to put down at least 20% on a new car and 10% on a used car to offset initial depreciation and reduce monthly borrowing costs.

What are dealer doc fees and are they negotiable?+

Document fees cover the administrative cost of processing the purchase paperwork. The fee itself is rarely negotiable, but you can negotiate the car price down to offset it.

Can I refinance an auto loan?+

Yes. If interest rates have dropped or your credit score has improved since you purchased the car, you can refinance the auto loan to lower your rate and payment.

How does a co-signer help with an auto loan?+

A co-signer with good credit shares legal responsibility for the loan, helping buyers with limited credit histories qualify for approval and lower interest rates.

Period	Payment	Principal	Interest	Balance
Month 1	$602	$435	$167	$30,315
Month 2	$602	$437	$164	$29,877
Month 3	$602	$440	$162	$29,438
Month 4	$602	$442	$159	$28,995
Month 5	$602	$445	$157	$28,551
Month 6	$602	$447	$155	$28,104
Month 7	$602	$449	$152	$27,654
Month 8	$602	$452	$150	$27,203
Month 9	$602	$454	$147	$26,748
Month 10	$602	$457	$145	$26,291
Month 11	$602	$459	$142	$25,832
Month 12	$602	$462	$140	$25,370
Month 13	$602	$464	$137	$24,906
Month 14	$602	$467	$135	$24,439
Month 15	$602	$469	$132	$23,970
Month 16	$602	$472	$130	$23,498
Month 17	$602	$474	$127	$23,024
Month 18	$602	$477	$125	$22,547
Month 19	$602	$480	$122	$22,068
Month 20	$602	$482	$120	$21,585
Month 21	$602	$485	$117	$21,101
Month 22	$602	$487	$114	$20,613
Month 23	$602	$490	$112	$20,123
Month 24	$602	$493	$109	$19,631
Month 25	$602	$495	$106	$19,135
Month 26	$602	$498	$104	$18,637
Month 27	$602	$501	$101	$18,137
Month 28	$602	$503	$98	$17,633
Month 29	$602	$506	$96	$17,127
Month 30	$602	$509	$93	$16,618
Month 31	$602	$512	$90	$16,106
Month 32	$602	$514	$87	$15,592
Month 33	$602	$517	$84	$15,075
Month 34	$602	$520	$82	$14,555
Month 35	$602	$523	$79	$14,032
Month 36	$602	$526	$76	$13,506
Month 37	$602	$528	$73	$12,978
Month 38	$602	$531	$70	$12,447
Month 39	$602	$534	$67	$11,912
Month 40	$602	$537	$65	$11,375
Month 41	$602	$540	$62	$10,835
Month 42	$602	$543	$59	$10,292
Month 43	$602	$546	$56	$9,746
Month 44	$602	$549	$53	$9,197
Month 45	$602	$552	$50	$8,646
Month 46	$602	$555	$47	$8,091
Month 47	$602	$558	$44	$7,533
Month 48	$602	$561	$41	$6,972
Month 49	$602	$564	$38	$6,408
Month 50	$602	$567	$35	$5,841
Month 51	$602	$570	$32	$5,271
Month 52	$602	$573	$29	$4,698
Month 53	$602	$576	$25	$4,122
Month 54	$602	$579	$22	$3,542
Month 55	$602	$582	$19	$2,960
Month 56	$602	$586	$16	$2,374
Month 57	$602	$589	$13	$1,786
Month 58	$602	$592	$10	$1,194
Month 59	$602	$595	$6	$598
Month 60	$602	$598	$3	$0

Period

Payment

Principal

Interest

Balance

Month 1

$602

$435

$167

$30,315

Month 2

$602

$437

$164

$29,877

Month 3

$602

$440

$162

$29,438

Month 4

$602

$442

$159

$28,995

Month 5

$602

$445

$157

$28,551

Month 6

$602

$447

$155

$28,104

Month 7

$602

$449

$152

$27,654

Month 8

$602

$452

$150

$27,203

Month 9

$602

$454

$147

$26,748

Month 10

$602

$457

$145

$26,291

Month 11

$602

$459

$142

$25,832

Month 12

$602

$462

$140

$25,370

Month 13

$602

$464

$137

$24,906

Month 14

$602

$467

$135

$24,439

Month 15

$602

$469

$132

$23,970

Month 16

$602

$472

$130

$23,498

Month 17

$602

$474

$127

$23,024

Month 18

$602

$477

$125

$22,547

Month 19

$602

$480

$122

$22,068

Month 20

$602

$482

$120

$21,585

Month 21

$602

$485

$117

$21,101

Month 22

$602

$487

$114

$20,613

Month 23

$602

$490

$112

$20,123

Month 24

$602

$493

$109

$19,631

Month 25

$602

$495

$106

$19,135

Month 26

$602

$498

$104

$18,637

Month 27

$602

$501

$101

$18,137

Month 28

$602

$503

$98

$17,633

Month 29

$602

$506

$96

$17,127

Month 30

$602

$509

$93

$16,618

Month 31

$602

$512

$90

$16,106

Month 32

$602

$514

$87

$15,592

Month 33

$602

$517

$84

$15,075

Month 34

$602

$520

$82

$14,555

Month 35

$602

$523

$79

$14,032

Month 36

$602

$526

$76

$13,506

Month 37

$602

$528

$73

$12,978

Month 38

$602

$531

$70

$12,447

Month 39

$602

$534

$67

$11,912

Month 40

$602

$537

$65

$11,375

Month 41

$602

$540

$62

$10,835

Month 42

$602

$543

$59

$10,292

Month 43

$602

$546

$56

$9,746

Month 44

$602

$549

$53

$9,197

Month 45

$602

$552

$50

$8,646

Month 46

$602

$555

$47

$8,091

Month 47

$602

$558

$44

$7,533

Month 48

$602

$561

$41

$6,972

Month 49

$602

$564

$38

$6,408

Month 50

$602

$567

$35

$5,841

Month 51

$602

$570

$32

$5,271

Month 52

$602

$573

$29

$4,698

Month 53

$602

$576

$25

$4,122

Month 54

$602

$579

$22

$3,542

Month 55

$602

$582

$19

$2,960

Month 56

$602

$586

$16

$2,374

Month 57

$602

$589

$13

$1,786

Month 58

$602

$592

$10

$1,194

Month 59

$602

$595

$598

Month 60

$602

$598

How to understand and use this calculator

The Components of a Car Purchase Transaction

Vehicle Price: The negotiated price of the car (often referred to as the out-the-door price, excluding financing costs).

Down Payment & Trade-In: The cash down payment plus the net trade-in value of your current car. Both directly reduce the principal balance you need to borrow.

Sales Tax & Registration: Local sales taxes and state title/registration fees. Dealers often roll these fees directly into the loan, meaning you pay interest on taxes.

Dealer Fees: Document fees (doc fees), prep fees, or destination charges. Always check these charges, as they can inflate the loan principal.

The Auto Loan Amortization Formula

The monthly payment is calculated using the standard amortizing loan formula, applied to the Net Financed Amount:

$$PMT = A_{\text{financed}} \times \frac{r(1 + r)^n}{(1 + r)^n - 1}$$

Where the Net Financed Amount is calculated as:

$$A_{\text{financed}} = \text{Vehicle Price} + \text{Sales Tax} + \text{Dealer Fees} - \text{Down Payment} - \text{Trade-In Value}$$

This formula shows why trading in a car with negative equity (owing more than the car is worth) inflates the payment. The negative balance is added to the new loan, increasing the financed amount.

The Risk of Long-Term Auto Loans (Negative Equity)

In recent years, 72-month and 84-month auto loans have become common as buyers seek lower monthly payments. However, vehicles are depreciating assets that lose value rapidly.

Negotiating the Out-The-Door Price vs. Monthly Payment

Always negotiate the Out-The-Door (OTD) Price first. Once the OTD price is finalized, evaluate financing terms, APR, and total interest separately to ensure you get the best deal.

Related concepts

Amount Financed

The total loan principal borrowed after adding taxes/fees and subtracting cash down/trade-in.

GAP Insurance

Coverage that pays the difference between the vehicle value and the remaining loan balance in a total loss.

Negative Equity

The financial state of owing more on a vehicle loan than the asset's current market value.

Frequently Asked Questions

Does the calculator include sales tax?+

Yes. The calculator applies your local sales tax rate to the vehicle price and adds it to the total loan principal before down payment subtractions.

What is the "Out-The-Door" price?+

The Out-The-Door (OTD) price is the total cost to purchase the vehicle, including the car price, sales tax, dealer doc fees, registration, and title fees, before financing.

Why is the amount financed different from the vehicle sticker price?+

The amount financed is the actual balance borrowed. It includes the vehicle price, taxes, and fees, minus your down payment and net trade-in credit.

Should I choose a 72-month or 84-month car loan?+

Avoid long terms if possible. While they lower the monthly payment, they keep you in debt longer, increase lifetime interest, and increase the risk of negative equity.

What is negative equity on a trade-in?+

Negative equity (being "underwater") means you owe more on your current car loan than the vehicle's actual trade-in value. This deficit is typically rolled into the new loan.

What is GAP insurance and do I need it?+

Guaranteed Asset Protection (GAP) insurance covers the difference between the actual cash value of the vehicle and the remaining loan balance if the car is totaled or stolen.

How much should I put down on a car?+

A standard recommendation is to put down at least 20% on a new car and 10% on a used car to offset initial depreciation and reduce monthly borrowing costs.

What are dealer doc fees and are they negotiable?+

Document fees cover the administrative cost of processing the purchase paperwork. The fee itself is rarely negotiable, but you can negotiate the car price down to offset it.

Can I refinance an auto loan?+

Yes. If interest rates have dropped or your credit score has improved since you purchased the car, you can refinance the auto loan to lower your rate and payment.

How does a co-signer help with an auto loan?+

A co-signer with good credit shares legal responsibility for the loan, helping buyers with limited credit histories qualify for approval and lower interest rates.

Auto Loan Calculator

Inputs

Results

Bookmark this Auto Loan Calculator

Auto loan payment

How the calculation works

Example auto loan

Learn more about this calculation

Auto Loan Financing: Compare Payment and Total Cost

Loan Payment Guide: Formula, Interest, and Total Cost

Auto Loan Calculator

Inputs

Results

Bookmark this Auto Loan Calculator

Key output metrics

Purchase cost components

Auto loan balance timeline

Principal, interest, and balance timeline

How to understand and use this calculator

The Components of a Car Purchase Transaction

The Auto Loan Amortization Formula

The Risk of Long-Term Auto Loans (Negative Equity)

Negotiating the Out-The-Door Price vs. Monthly Payment

Related concepts

Frequently Asked Questions

Auto loan payment

How the calculation works

Example auto loan

Learn more about this calculation

Auto Loan Financing: Compare Payment and Total Cost

Loan Payment Guide: Formula, Interest, and Total Cost

Key output metrics

Purchase cost components

Auto loan balance timeline

Principal, interest, and balance timeline

How to understand and use this calculator

The Components of a Car Purchase Transaction

The Auto Loan Amortization Formula

The Risk of Long-Term Auto Loans (Negative Equity)

Negotiating the Out-The-Door Price vs. Monthly Payment

Related concepts

Frequently Asked Questions