This auto loan calculator is intended for U.S.-style vehicle purchases. It estimates monthly payments, tax, fees, and amortization using simplified rules — always confirm taxes and fees with your dealer or DMV. If you only know a target monthly payment, use the Monthly payment mode to approximate the vehicle price you can support.
How this auto loan calculator works
Enter vehicle price, term, APR, down payment, trade-in, optional rebates, sales tax rate, and fees. Choose whether tax and fees are financed or paid upfront. The tool outputs monthly payment, loan amount, total interest, total cost, a principal vs interest chart, and annual or monthly amortization.
How auto loans work
An auto loan is secured by the vehicle. Terms of 36–84 months are common; each fixed payment splits between interest and principal, with early payments weighted toward interest (amortization).
Dealership financing vs direct lending
Direct lending (bank, credit union, online) lets you shop rates and walk in pre-approved. Dealership financing is convenient and sometimes offers promotional rates. A practical approach: get pre-approved, then let the dealer try to beat it.
What affects your interest rate?
Illustrative ranges — offers vary.
| Credit score | Typical new car APR | Typical used car APR |
|---|---|---|
| 750+ | 4% – 6% | 5% – 8% |
| 700 – 749 | 6% – 8% | 8% – 11% |
| 650 – 699 | 9% – 13% | 12% – 16% |
| 600 – 649 | 14% – 19% | 17% – 22% |
| Below 600 | 19% – 26% | 22% – 29% |
Fees and sales tax
Beyond the sticker: sales tax (varies by state), title and registration, documentation fees, destination charges on new cars, and optional add-ons. Our state dropdown applies a simplified rule: states with no sales tax ignore your rate; in a few states the model taxes the full adjusted price without subtracting trade-in. Real transactions can differ.
New vs used
New cars depreciate quickly but often qualify for lower rates and warranties. Late-model used cars can offer better value; rates are often higher. Compare total cost (price + interest + tax + fees), not just payment.
Strategies to save
- Get pre-approved before negotiating.
- Negotiate vehicle price separately from payment and term.
- Put enough down to avoid long stretches “underwater.”
- Prefer the shortest affordable term to cut total interest.
- Check credit reports before applying.
Trade-ins
Dealers may offer less than private-sale value for convenience. In many states, trade-in credit also reduces taxable purchase price — another reason to model both price and tax carefully. Negative equity on a trade is often rolled into the new loan.
Buy vs lease
Leasing is a long-term rental with mileage limits; buying builds equity if you keep the vehicle. For long hold periods, buying usually wins on total cost; leasing can suit predictable low-mileage drivers who want a new car often.
Related tools
See the Loan Payoff Calculator, Mortgage Calculator, and other financial calculators.