Auto Loan Calculator

See exactly what you'll pay. Account for sales tax, trade-ins, and down payments to find a car you can afford.

Estimated Monthly Payment

$0/mo
Total Loan Amount$0
Total Interest Paid$0
Total Sales Tax$0
Total Cost (Price + Tax + Interest)$30,000

How to Use This Calculator

  1. Vehicle Price: Enter the negotiated price of the car (before tax).
  2. Down Payment: Cash you are paying upfront.
  3. Trade-In Value: The amount the dealer is offering for your old car.
  4. Interest Rate: The APR offered by your lender.
  5. Sales Tax: Your state's vehicle sales tax rate.
  6. Loan Term: Choose how long you want to finance (36-84 months).

Pro Tip: The "20/4/10" Rule

For financial health, aim for a down payment of at least 20%, a loan term of no more than 4 years, and keep your total transportation costs (including insurance) under 10% of your monthly income.

Understanding Auto Loans

An auto loan is a secured loan used to purchase a vehicle. You borrow money from a lender (bank, credit union, or dealership) to buy the car, and pay it back over time with interest.

How Tax & Trade-Ins Work

One commonly overlooked advantage of trading in a vehicle is the Sales Tax Credit. In many states, you only pay sales tax on the difference between the new car's price and your trade-in value.

  • Example: Buying a $30,000 car with a $10,000 trade-in.
  • Without trade-in: Tax on $30,000.
  • With trade-in: Tax on $20,000 (Savings of ~$600-800 depending on your state).

Longer Terms = More Cost

While 72 or 84-month loans lower your monthly payment, they drastically increase the total interest you pay. They also put you at higher risk of becoming "upside-down" on your loan (owing more than the car is worth).

Frequently Asked Questions

What credit score do I need for an auto loan?

Generally, a score above 660 gives you access to good rates ("Prime"). Scores above 720 get the best ("Super Prime") rates. You can still get a loan with lower scores, but expect significantly higher interest rates.

Should I take the dealer financing or a bank loan?

Always get pre-approved by a bank or credit union before going to the dealership. This gives you a baseline to compare against. Dealers sometimes mark up the interest rate to make profit, but they also might offer 0% APR incentives that banks can't match.

Does my comprehensive price include license and registration fees?

This calculator focuses on the vehicle purchase and sales tax. License, registration, and documentation fees ("doc fees") vary wildly by state and dealer. Plan for an extra $200-$500 depending on your location.