Auto Loan Calculator
Estimate your monthly car payment by entering price, down payment, trade-in value, loan term, APR, and sales tax.
Updated 2025-12-15Source: Standard auto loan amortization formula
Reviewed by Hassan Ahmed, Founder and Software Developer. Not a licensed tax advisor.
Monthly payment
$650 /mo
Loan amount
$32,450
Total interest
$6,564
Total paid
$39,014
Breakdown
- Vehicle price
- $35,000
- Sales tax
- $2,450
- Down payment
- − $5,000
- Amount financed
- $32,450
Frequently Asked Questions
How is the auto loan monthly payment calculated?+
Using the standard amortization formula on the amount financed (vehicle price + sales tax − down payment − trade-in value), at the given APR over the loan term.
Is sales tax included in the loan?+
In most US states, yes — sales tax is added to the financed amount. The calculator follows this convention.
How does a trade-in affect the payment?+
Trade-in value reduces the amount financed, lowering both the monthly payment and total interest paid.
What's a typical auto loan APR?+
Average new-car APRs typically run 7-8% for prime borrowers and 12-18% for subprime, and used-car rates usually sit 1-2 percentage points higher. Rates move with the Federal Reserve, so check a current quote from your bank or credit union before you commit.
Should I take a longer loan term to lower the payment?+
Longer terms (72–84 months) lower the monthly payment but increase total interest significantly and risk being upside-down (owing more than the car is worth). 60 months is the common sweet spot.