Auto Loan Calculator
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Used vehicles typically carry rates 1–3% higher than new cars. Consider 8–11% if your credit is average.
Monthly Payment
$509
60 payments · 7.5% APR
Loan Amount
$28,688
Total Interest
$5,842
Total Vehicle Cost
$36,530
Out-of-Pocket Today
$5,000
Cost Breakdown by Component
Principal 75%
Sales Tax 8%
Interest 17%
Compare Options
Loan Term Comparison
See how your choice of loan term affects monthly payment and total interest at your current vehicle price and rate.
| Term | Monthly Payment | Total Interest | Total Paid | vs. 60-Month |
|---|
How It Works
How to Use This Calculator
1
Enter the vehicle price
Start with the sticker price (MSRP or agreed purchase price), not the financed amount. You can negotiate this separately from financing.
2
Add down payment and trade-in
Both reduce the amount you finance. Your trade-in is credited against the purchase price before tax and financing are calculated.
3
Set your state's sales tax
Sales tax is applied to the vehicle price in most states. Texas is 6.25%, California is 7.25%, Florida is 6%. Confirm your local rate.
4
Choose loan term and rate
Use your pre-approved rate if you have one. Drag the slider to explore how rate changes affect your monthly payment.
5
Compare terms side by side
The comparison table shows all common terms at once so you can see the real cost difference between a 48-month and 72-month loan.
6
Review the full cost
The total vehicle cost includes principal, sales tax, and all interest. This is the number that matters most for your budget decision.
Reference
Understanding Your Results
Each output in the calculator represents a specific part of your total auto loan cost.
| Term | What It Means | Why It Matters |
|---|---|---|
| Monthly Payment | The fixed amount you pay each month for the life of the loan, calculated using the standard amortization formula. | Must fit comfortably in your monthly budget. A general rule is to keep total car costs under 15% of take-home pay. |
| Loan Amount | Vehicle price minus down payment and trade-in, plus sales tax. This is the principal you are borrowing. | Smaller principal means less interest. Every dollar of down payment or trade-in saves you money in interest. |
| Total Interest Paid | The cumulative cost of borrowing over the life of the loan. Interest is front-loaded in early payments (amortization). | Shows the true premium you pay for financing. Shorter terms and lower rates reduce this number dramatically. |
| Total Vehicle Cost | Principal + all interest paid + sales tax. The real, all-in cost of owning this vehicle through the loan term. | Compare this against the sticker price to understand the full cost of financing versus paying cash. |
| Out-of-Pocket Today | The cash you need at signing: your down payment. (Dealer fees and registration are not included here.) | Make sure you have this amount in cash before committing. Plan to have extra for dealer fees and first-month insurance. |
| APR vs Rate | The interest rate is the base borrowing cost. APR includes fees and is the better comparison number across lenders. | Always compare APR, not the rate alone. A loan with lower rate but high fees can cost more than one with a higher rate. |
FAQ
Frequently Asked Questions
A good car loan rate depends on your credit score and whether the vehicle is new or used. With excellent credit (750+), you can typically find new car rates between 4–6% APR. Good credit (700–749) often qualifies for 5–8%. For used vehicles, rates run 1–3 percentage points higher. Rates above 10% indicate room to improve your credit or shop additional lenders before signing.
Financial experts generally recommend a down payment of at least 20% for a new vehicle and 10% for a used vehicle. A larger down payment lowers your monthly payment, reduces total interest paid, and helps you avoid being "underwater" on the loan (owing more than the car is worth). Many lenders also offer better interest rates with a higher down payment.
Longer loan terms like 72 or 84 months lower your monthly payment but significantly increase total interest paid. A vehicle also depreciates fastest in its first few years, so a long-term loan can leave you owing more than the car is worth—called being "upside down." Most financial advisors recommend keeping auto loans to 48–60 months to balance affordability and total cost. Use the term comparison table above to see exactly how much more you'd pay.
Yes, in several ways. Applying for a loan triggers a hard inquiry that may temporarily lower your score by a few points. Taking on new debt increases your total obligations. However, making on-time payments consistently builds a positive payment history, which is the largest factor in your credit score. A car loan can ultimately help your score if managed responsibly, especially if it adds to your mix of credit types.
The interest rate is the base cost of borrowing, expressed as a percentage of the principal. APR (Annual Percentage Rate) includes the interest rate plus any fees—like origination fees or dealer financing fees—expressed as a single annualized percentage. APR gives you a more complete picture of the true cost of the loan, making it the better number to compare across different lenders and offers.
Getting pre-approved from your bank or credit union before visiting the dealer gives you a baseline rate and negotiating leverage. Dealers sometimes offer competitive rates through manufacturer financing (especially 0% promotional APR on new cars), but they can also mark up rates and earn profit from your financing. Always compare the dealer's offer against your pre-approval. Credit unions often offer the best rates for members with good credit.
When you trade in a vehicle at a dealership, its value is applied as a credit toward your new purchase, reducing the amount you need to finance. For example, if you're buying a $32,000 car and your trade-in is worth $8,000, your loan amount would be $24,000 (minus any additional down payment). In many states, the trade-in value also reduces the sales tax base, since you only pay tax on the difference. This calculator applies trade-in value as a direct reduction to the financed amount.