Shorter loans cost less interest; the average new-car loan is now about 68 months. Get pre-approved by a bank or credit union so you can compare the dealer’s financing offer, and remember that rebates and 0% APR offers are often either-or.
How to use the Auto Loan Calculator
- Auto price
- Down payment
- Trade-in value
- Amount owed on trade-in
- Sales tax
- Title, registration and other fees
- Include taxes and fees in the loan?
- Interest rate (APR)
- Loan term
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the car price, down payment, trade-in value and amount owed, sales tax, fees, interest rate and term.
Tips
- Use your real spending from bank statements rather than guesses.
- Automate savings so they happen before you spend.
- Revisit your plan once a year or after any big life change.
- Keep an emergency fund before investing for long-term goals.
Common mistakes to avoid
- Underestimating irregular expenses such as car repairs, gifts and annual bills.
- Ignoring inflation for long-term goals.
- Taking on high-interest debt to fund wants.
Inputs explained
| Field | What to enter |
|---|---|
| Auto price | Amount in your currency |
| Down payment | Amount in your currency |
| Trade-in value | Amount in your currency |
| Amount owed on trade-in | Amount in your currency |
| Sales tax | In % |
| Title, registration and other fees | Amount in your currency |
| Include taxes and fees in the loan? | Choose one: Yes, No – pay upfront |
| Interest rate (APR) | In % |
| Loan term | Units: years, months |
What each result means
- Sales tax = max([Auto price] – [Trade-in value], 0)×[Sales tax]÷100
- Monthly payment = pmt([Interest rate (APR)]÷1200, [Loan term], [Total loan amount])
- Total loan interest = [Monthly payment]×[Loan term] – [Total loan amount]
- Total cost (price, interest, tax and fees) = [Auto price] + [Sales tax] + [Title, registration and other fees] + ([Monthly payment]×[Loan term] – [Total loan amount]) + [Amount owed on trade-in]
Example values
How the main result changes when Auto price changes and everything else stays at the example values above:
| Auto price | Monthly payment |
|---|---|
| 17,500 | 170.42 |
| 26,250 | 358.03 |
| 35,000 | 545.63 |
| 43,750 | 733.24 |
| 52,500 | 920.84 |
| 70,000 | 1,296.05 |
Formula
Taxable amount = price − trade-in (in most states)Loan = price + sales tax + fees − down payment − trade-in + amount owed on trade-inMonthly payment = loan × i ÷ (1 − (1 + i)^−n)Worked example
Inputs — Auto price: $35,000; Down payment: $5,000; Trade-in value: $6,000; Amount owed on trade-in: $0; Sales tax: 7 %; Title, registration and other fees: $1,200; Include taxes and fees in the loan?: Yes; Interest rate (APR): 7.5 %; Loan term: 5 years.
Results — Sales tax = $2,030.00; Total loan amount = $27,230.00; Monthly payment = $545.63; Total loan interest = $5,508.00; Upfront payment = $5,000.00; Total cost (price, interest, tax and fees) = $43,738.00.
Frequently asked questions
How much car can I afford?
Many advisers suggest total car costs under 10–15% of take-home pay.
What is a good auto loan rate?
It depends on credit; new-car rates for top credit have been around 5–7% recently.
Should I roll negative equity into a new loan?
It raises your payment and interest – avoid it if you can.
What formula does the Auto Loan Calculator use?
Taxable amount = price − trade-in (in most states).