Auto Loan Calculator
Estimate your monthly car payment, total interest paid, and full payoff schedule. Includes down payment, trade-in credit, sales tax, and fees.
Show payoff schedule (yearly)
| Year | Principal paid | Interest paid | Balance |
|---|
How the loan amount is built
Loan amount = (Price − Trade-in) + Sales tax + Fees − Down payment + Owed on trade-in
Sales tax is computed on the net price (vehicle minus trade-in credit) — a tax break called the trade-in credit available in most US states. If you still owe money on your trade-in (negative equity), that gets added to your new loan, which is a common cause of going underwater.
Tips before you sign
- Get pre-approved from your bank or credit union before going to the dealership. It gives you a benchmark and removes financing pressure.
- Negotiate the out-the-door price, not the monthly payment. Dealers can hit any monthly target by stretching the term.
- Decline the extended warranty, GAP insurance from the dealer, and tire/wheel protection — they're high-margin add-ons. If you want GAP, your insurance company sells it for less.
- 20% down, 4-year max, payment under 10% of monthly take-home is the classic "20/4/10" rule. It's conservative; if you blow past it, know what you're doing.
Frequently asked questions
Should I take dealer financing or a credit union loan?
Always compare both. Dealer financing can occasionally beat credit unions when manufacturers offer 0% promo rates on specific models, but credit unions typically have lower rates by 1–2% on standard auto loans. Get a pre-approval first; then ask the dealer to beat it.
What's the difference between APR and interest rate?
The interest rate is what you pay on the loan principal. The APR includes the interest rate plus most fees, expressed as an annual percentage — so it's the more accurate way to compare offers from different lenders.
Is leasing cheaper than buying?
Per month, leasing is usually cheaper. But you own nothing at the end and start over with a new payment. Over 10–15 years, buying and holding is dramatically cheaper than perpetual leasing. Lease only if you actually want a new car every 3 years.
This calculator is for educational purposes and is not financial advice. For an exact quote, consult a licensed lender.