Estimate your monthly auto loan payment including interest, sales tax, and loan fees.
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Looking to finance your next car? Use this Auto Loan Calculator to estimate your monthly car payments, total loan interest, and overall loan cost. This calculator helps you budget better by breaking down every component of your auto loan: new or used vehicle purchases included.
An auto loan is a type of installment loan used to buy a vehicle. You borrow a fixed amount from a lender and repay it over time with interest.
The loan typically includes:
Understanding each component can help you avoid surprises and choose a loan that fits your budget.
Most car loan tools stop at the monthly payment—but real budgeting needs more. This Auto Loan Calculator gives you a complete picture of what your financing will look like.
Here is the breaks down:
You can follow the below steps to get a clear breakdown of your auto loan:
To calculate your monthly car loan payment, the calculator uses the standard amortization formula:
\(M = P \times \frac{r(1 + r)^n}{(1 + r)^n - 1}\)
Where:
The above formula helps break down the loan into equal monthly installments, accounting for interest and principal over time. The calculator also separately adds any sales tax and upfront charges (like registration or dealer fees), which aren't typically included in your monthly payment but still affect your total out-of-pocket cost.
Let's run through a realistic scenario.
Let's say you're planning to buy a car priced at $30,000. You put down $5,000 as a down payment and have a trade-in valued at $3,000. Your lender offers a 5 year loan term (60 months) with an APR of 6%. Sales tax in your state is 5%, and your lender charges $300 in loan fees.
Here's how the numbers play out:
This breakdown shows how your total cost includes not just the loan payments but also the upfront charges you'll pay at the dealership. Seeing it all laid out makes it easier to compare lenders or decide if increasing your down payment will lower your overall expenses.
Auto loan interest is the extra amount you pay on top of the principal, the actual amount you borrow. Even though you repay the loan in equal monthly installments, the interest is front-loaded. That means you pay more interest in the early months and more principal in the later ones.
The easiest way to calculate auto loan interest is as follows:
\(\text{Total Interest} = (\text{Monthly Payment} \times \text{Loan Term in Months}) - \text{Loan Amount}\)
You don't need to manually separate principal and interest month by month. Once you know your monthly payment and loan amount, this formula does the job.
Example:
Let's say:
Multiply:
\(\$480 \times 60 = \$28{,}800\)
Then subtract the original loan:
\(\$28{,}800 - \$25{,}000 = \$3{,}800\)
This $3,800 is what you pay in interest over the life of the loan.
This simple method will give you a clear picture of how much extra you're paying to finance the car. It helps you compare offers and decide if you should shorten the term or look for a lower rate.
It depends on your credit score and loan term. Rates for new cars are typically lower than for used cars. Someone with strong credit might see rates around 4–6%, while others may get higher offers.
Yes. A longer term lowers your EMI but increases the total interest paid. A shorter term means higher EMI but lower total cost.
Absolutely. This tool functions as a car EMI calculator by showing your monthly payment breakdown clearly.
Use our loan payoff calculator to estimate how much interest you’ll save by making extra payments.