Car Loan Calculator
Estimate your monthly car payment, total interest, and total cost of ownership with trade-in, APR, and sales tax.
Loan Summary
Amortization Schedule — First 5 Years
| Year | Principal Paid | Interest Paid | Remaining Balance |
|---|---|---|---|
| 1 | $5,677 | $1,942 | $26,773 |
| 2 | $6,057 | $1,562 | $20,716 |
| 3 | $6,463 | $1,156 | $14,253 |
| 4 | $6,896 | $723 | $7,357 |
| 5 | $7,357 | $262 | $0 |
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How this car loan calculator works
This car loan calculator estimates your monthly auto payment using the standard amortization formula: M = P × [r(1+r)n] / [(1+r)n − 1], where P is the loan Principal (vehicle price minus Down Payment and Trade-in Value, plus sales tax),r is the monthly Interest Rate (APR) divided by 12, and n is the Loan Term (Months). To estimate your estimated monthly car payment, the calculator also adds Sales Tax — charged on the vehicle price minus trade-in value in most U.S. states — into the financed principal.
The tool doubles as an auto loan interest rate calculator: adjust the APR slider to see how even a 1% rate change shifts your monthly payment and total interest. It also generates an Amortization Schedule for the first five years, showing how each payment splits between principal reduction and interest. Early payments are mostly interest, while later payments shift toward principal — this is why making extra payments early in the loan saves the most money.
Tips for lowering your car payment
- Put down at least 20% to reduce your Principal and avoid being "underwater" on the loan.
- A shorter Loan Term (Months) raises your monthly payment but saves thousands in interest — a 48-month loan costs far less total interest than a 72-month loan.
- Maximize your Trade-in Value — it reduces both the principal and the sales tax you pay in most states.
- Shop credit unions and online lenders before accepting dealership financing; even a 0.5% APR difference adds up over 60+ months.
- The Total Cost of Ownership shown here excludes insurance, fuel, maintenance, and depreciation — budget for those separately.
Already own a home? Compare your auto payment against your housing costs with our Mortgage Calculator. Or see how your monthly car savings could grow with our Compound Interest Calculator.