Monthly Pay: $—

Auto price: $—
Sale tax: $—
Fees (title, registration, etc.): $—
Upfront payment (down + any non-financed): $—
Total loan amount (financed): $—
Total of all payments: $—
Total loan interest: $—
Total cost (price, interest, fees, tax): $—

Loan Breakdown

Principal — 100%
Interest — 0%

Principal Interest

Amortization schedule

Annual snapshot (approx.)

Year	Interest	Principal	Ending balance

Table shows a rough year-by-year picture based on your monthly payment.

Balance Cumulative interest Cumulative payments

What Is an Auto Loan?

An auto loan is a type of installment loan used to finance the purchase of a vehicle. You borrow a specific amount, pay interest on it, and repay the loan through fixed monthly payments over a set term. This calculator helps you estimate monthly payments, total interest, amortization schedule, and overall loan cost.

How the Auto Loan Calculator Works

The calculator uses the standard amortization formula to determine monthly payments:

Payment = (r × P) / (1 − (1 + r)^−n)

P = Loan amount  
r = Monthly interest rate  
n = Number of payments

It also factors in down payment, trade-in value, sales tax, incentives, and optional fees to give you an accurate financing estimate.

Simple Step-by-Step Breakdown

Loan Amount     = Price − Down Payment − Trade-in − Incentives + Tax + Fees
Monthly Rate    = APR ÷ 12
Total Cost      = Monthly Payment × Term
Total Interest  = Total Cost − Loan Amount

Example Calculation

For a $30,000 car with a $5,000 down payment, 5% APR, $900 in fees, and 7% sales tax:

Estimated monthly payment: $527
Total interest paid: ≈ $3,620
Total cost of the loan: ≈ $31,520

Choosing the Right Loan Term

The term you choose affects your payment and interest:

Loan Term	Monthly Payment	Total Interest	Best For
36 months	High	Low	Saving money long-term
48 months	Medium	Medium	Balanced option
60 months	Low	Higher	Most common
72 months	Lowest	Highest	Lower monthly budget

How Much Should You Put Down?

New cars: 20% down payment recommended
Used cars: 10% down payment recommended

A larger down payment reduces monthly payments, decreases interest, and lowers the risk of owing more than the car is worth.

Understanding APR (Annual Percentage Rate)

APR includes the interest rate plus lender fees. Even a small difference in APR can change the total cost by thousands of dollars over the loan term.

Should You Roll Taxes & Fees Into the Loan?

Pros:

Lower upfront cost
No need for extra cash at purchase

Cons:

Higher monthly payment
More interest paid
Increases total loan cost

Auto Loan Amortization Schedule

The amortization schedule shows how each payment is divided between interest and principal. Early payments are mostly interest; later ones are mostly principal. The calculator generates a full schedule and annual summary.

Tips to Reduce Your Auto Loan Cost

Improve your credit score
Increase your down payment
Shop around (banks, credit unions, online lenders)
Choose a shorter loan term
Avoid unnecessary dealer add-ons

Frequently Asked Questions

1. What is a good APR for a car loan?

Excellent credit: 3–5% APR. Average: 6–10%. Poor credit: 12–20%+.

2. How much car can I afford?

Your car payment should be no more than 15% of your take-home pay.

3. Do auto loans have early payoff penalties?

Most loans do not, but check with your lender.

4. Is it better to finance through a bank or dealer?

Banks and credit unions usually offer lower APR than dealer financing.

5. Can I get a loan with no down payment?

Yes, but monthly payments and total interest will be higher.

6. Do taxes and fees count toward the loan?

Only if you choose to roll them into the financed amount.