Auto Loan Calculator

Calculate your monthly car payment instantly

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Built by WOWHOW Team · 14+ yrs engineering

Auto Loan Calculator is a free, browser-based tool that lets you calculate your monthly car payment instantly — with zero signup, zero installation. Your data never leaves your browser. Part of 138+ free developer and business tools at wowhow.cloud, built and maintained by a team with 14+ years of hands-on development experience.

TOOLAuto Loan Calculator

Vehicle Price$35,000

$5K$150K

Down Payment

10%

= $3,500

Trade-In Value

Sales Tax Rate6%

0%15%

= $2,100 added to loan

Loan Term

Interest Rate (Annual APR)6.5%

0%20%

Monthly Payment

$657/month

60 months · 6.5% APR · $33,600 financed

Payment Breakdown

Principal (avg/mo)

$560.00/mo

Interest (avg/mo)

$97.42/mo

Loan Summary

Loan Amount

$33,600

Total Interest

$5,845

Total Cost

$42,945

Vehicle + Tax

$37,100

Deal Snapshot

Vehicle Price$35,000

Down Payment-$3,500

Sales Tax+$2,100

Amount Financed$33,600

Amortization Schedule

60 total payments

Month	Principal	Interest	Balance
1	$475.42	$182.00	$33,125
2	$478.00	$179.42	$32,647
3	$480.59	$176.84	$32,166
4	$483.19	$174.23	$31,683
5	$485.81	$171.62	$31,197
6	$488.44	$168.98	$30,709
7	$491.08	$166.34	$30,217
8	$493.74	$163.68	$29,724
9	$496.42	$161.00	$29,227
10	$499.11	$158.31	$28,728
11	$501.81	$155.61	$28,226
12	$504.53	$152.89	$27,722

Estimates only. Sales tax calculation assumes trade-in credit applies in your state (most US states allow this). Actual loan terms, fees, and rates vary by lender and credit score. Consult your lender or dealer for precise figures before signing.

About Auto Loan Calculator

A car is typically the second-largest purchase most Americans make, but unlike a home, it depreciates the moment you drive off the lot. Knowing your exact monthly payment before visiting a dealership prevents financing decisions made under pressure. This calculator models the full auto loan cost — vehicle price, down payment, trade-in credit, sales tax, and interest — delivering a complete payment breakdown and amortization schedule.

How It Works

Auto loan payments use the same amortization formula as mortgages: Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the financed amount (loan principal), r is the monthly interest rate (APR ÷ 12), and n is the number of monthly payments. The financed amount = Vehicle Price - Down Payment - Trade-in Value + Sales Tax (if rolled into loan).

For example, a $32,000 car with $3,000 down, $5,000 trade-in, 8% sales tax on $27,000, at 6.5% APR for 60 months: Sales tax = $2,160. Financed = $32,000 - $3,000 - $5,000 + $2,160 = $26,160. Monthly rate = 0.00542. Monthly payment = $26,160 × [0.00542 × (1.00542)^60] / [(1.00542)^60 - 1] = $511/month.

The amortization schedule shows every monthly payment split into interest and principal. Total interest = (Monthly Payment × n) - P. In the first month, interest is highest (P × monthly rate). Each subsequent month, more goes to principal as the balance falls. The calculator flags loans where the early balance exceeds the car's likely depreciated value — the "underwater" zone where you owe more than the car is worth.

Who Is This For

A buyer considering a $38,000 SUV with $5,000 down, $4,000 trade-in, at 7.2% APR for 60 months wants to know their exact monthly payment and total interest before going to the dealership.

A consumer comparing dealer financing at 8.9% vs credit union pre-approval at 6.1% for $22,000 over 48 months — the calculator shows a $342 difference in total interest paid.

A first-time car buyer with $2,000 saved wants to find the maximum vehicle price they can afford for a $400/month payment at 7% APR over 60 months (answer: ~$20,000 including tax).

A buyer debating 48-month vs 72-month term on $28,000 at 6.5% — 48 months costs $628/month but saves $2,100 in interest vs. 72 months at $471/month.

A business owner purchasing a vehicle wants to see the loan amortization to determine the interest portion of each payment, which may be deductible as a business expense under IRS rules.

Scope note: Interest rates available to you depend on your credit score, lender, and loan term — this calculator models the rate you enter. Dealer-arranged financing often includes a dealer markup above the buy rate from the lender (sometimes 1-2.5%); always compare with credit union or bank pre-approval before visiting a dealership. Title fees, registration, and documentation fees (typically $200-800) are not included. Gap insurance cost is not modeled but is worth considering if making a minimal down payment on a rapidly depreciating vehicle.

Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Results are estimates based on publicly available tax slabs and formulas. Consult a qualified Chartered Accountant, tax professional, or financial advisor for guidance specific to your situation. Built and maintained by the WOWHOW Team with 14+ years of software development experience.

How to Use

Enter the vehicle price and your down payment amount or percentage

Add trade-in value if you have a vehicle to trade in

Set your local sales tax rate and choose a loan term

Adjust the interest rate to match your pre-approved rate or estimate

Frequently Asked Questions

Auto loans use simple amortization. Each month, interest is charged on the remaining balance. Early payments go mostly toward interest, while later payments pay down more principal.

Yes, this calculator adds sales tax to the loan amount by default, which is how most auto loans work in the US. The tax is calculated on the vehicle price minus trade-in value in states that allow trade-in tax credits.

As of 2026, rates between 4-7% are considered good for new cars with strong credit. Used car rates are typically 1-2% higher. Your actual rate depends on credit score, loan term, and lender.

In most US states, yes — sales tax is calculated on the difference between the new vehicle price and trade-in value. This calculator applies the tax credit automatically.

A shorter loan term (24-36 months) means higher monthly payments but significantly less total interest. A 60-month vs 36-month loan on $25,000 at 7% costs $1,900 more in total interest. Longer terms (72-84 months) create underwater risk — the loan balance exceeds the car's declining value. Aim for the shortest term your budget allows.

Credit score tiers for auto loans: 781-850 (Super Prime) → 4-5% rates; 661-780 (Prime) → 5-7%; 601-660 (Near Prime) → 7-11%; 501-600 (Subprime) → 11-16%; Below 500 → 16-25%. Improving your credit score by 50-100 points before applying can save thousands in interest on a typical car loan.

Leasing makes sense if you drive under 12,000 miles/year, want a new car every 2-3 years, and can use the car for business (lease payments may be partially deductible). Buying makes sense if you plan to own 5+ years, drive high mileage, or want to build equity. Over a 10-year period, buying consistently wins financially for most households.