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Auto Loan Calculator

Estimate monthly car payments, amount financed, total interest, tax, fees, and amortization.

Optional percentage applied to the vehicle price.

Optional registration, documentation, or lender fees.

Status: initial

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Auto loan guide

Introduction

An auto loan calculator estimates monthly vehicle payments from price, down payment, trade-in value, interest rate, term, tax, and fees.

What is an auto loan?

An auto loan is a fixed-term loan used to finance a vehicle purchase. Most auto loans are amortizing loans, which means each monthly payment covers interest and reduces principal.

Auto loan formula

The calculator first estimates the amount financed, then applies the standard amortizing loan formula. Sales tax and fees can be included as optional assumptions.

Variables explained

Vehicle price

The negotiated purchase price before tax, fees, and credits.

Down payment

Cash paid upfront to reduce the amount financed.

Trade-in value

Vehicle credit applied to reduce the financed balance.

Interest rate

The annual borrowing rate used to calculate monthly interest.

Loan term

The repayment length in months, from 1 to 120 months.

Tax and fees

Optional assumptions for sales tax, registration, and lender fees.

Formula guide

Monthly auto loan payment

Payment = P x r x (1 + r)^n / ((1 + r)^n - 1)

This calculates the fixed monthly payment for an amortizing vehicle loan.

Zero-interest auto loan

Payment = P / n

When the interest rate is 0%, the payment is the financed amount divided by months.

Amount financed

Amount Financed = Vehicle Price + Sales Tax + Fees - Down Payment - Trade-in

This is the balance used in the monthly payment formula.

Total cost

Total Cost = Total Repayment + Down Payment + Trade-in

This gives a broader view of the purchase cost across cash and financed amounts.

Worked examples

New car purchase

  1. Vehicle price is 35,000.
  2. Down payment is 5,000 and trade-in is 3,000.
  3. Sales tax is 6% and fees are 800.
  4. At 7% for 60 months, the monthly payment is about 592.

Used car purchase

  1. Vehicle price is 18,000.
  2. Down payment is 2,500.
  3. There is no trade-in credit.
  4. The financed amount is reduced by the cash paid upfront.

Zero-interest promotion

  1. Amount financed is 24,000.
  2. Loan term is 48 months.
  3. Interest rate is 0%.
  4. Monthly payment is 500.

Tax and fees effect

  1. Sales tax and fees increase the amount financed when rolled into the loan.
  2. A higher financed amount increases monthly payment.
  3. Paying fees upfront can reduce the loan balance.
  4. Actual dealer and state fees vary by location.

Common auto loan mistakes

Ignoring the out-the-door cost

Vehicle price alone may not include tax, title, registration, documentation fees, or lender fees.

Only comparing monthly payments

A longer term can lower the payment but increase total interest.

Overestimating trade-in value

Use a conservative trade-in estimate until the dealer or buyer confirms the value.

Forgetting negative equity

This release handles trade-in credit, not negative equity payoff. Add that separately as a fee if needed.

Treating estimates as approvals

Actual loan offers depend on lender underwriting, credit profile, taxes, fees, and dealer terms.

FAQs

How is an auto loan payment calculated?
It uses the amortizing loan formula with amount financed, monthly interest rate, and number of payments.
What is amount financed?
Amount financed is vehicle price plus entered sales tax and fees, minus down payment and trade-in value.
Does the calculator include sales tax?
Yes, if you enter a sales tax rate. Leave it blank or 0 to exclude sales tax.
Does it include fees?
Yes, enter optional fees if you want them included in the amount financed.
Can trade-in value exceed vehicle price?
No. Trade-in value cannot exceed vehicle price in this calculator.
Can down payment exceed vehicle price?
No. Down payment cannot exceed vehicle price.
What happens at 0% interest?
The payment is amount financed divided by the number of months.
What loan terms are supported?
The calculator supports terms from 1 to 120 months.
What is total repayment?
Total repayment is the sum of scheduled monthly loan payments.
What is total interest?
Total interest is total repayment minus the amount financed.
What is total cost?
Total cost combines total repayment with upfront down payment and trade-in value for a broader purchase view.
Does this calculate insurance?
No. Auto insurance is not included because it is separate from the loan payment.
Does this include negative equity?
No. If you need to model negative equity, add the payoff amount as an optional fee for now.
Is this the same as a loan calculator?
It uses the same amortizing loan concept, but adds vehicle-specific inputs such as trade-in, sales tax, and fees.
Is this a loan offer?
No. It is an educational estimate and not a lender quote or financing approval.

References

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Last updated and version history

Last updated: 2026-07-04

  • 1.0.0 (2026-07-04): Initial production release with monthly payment, tax, fees, trade-in, and amortization summary.