Auto Loan Calculator
Car loans hide two things: sales tax, which is calculated on the price after your trade-in in most states, and the fact that a longer term lowers the payment while raising the total cost. This calculator shows both.
Vehicle and financing
Negotiate the out-the-door price before discussing monthly payments.
In most states the trade-in reduces the amount subject to sales tax.
Check your state and county, since combined rates often exceed the state figure.
Get pre-approved at a credit union or bank before you visit the dealer.
What the loan actually costs
You are financing $26,120 and paying $5,283 in interest over 5 years. That brings the total cost of the vehicle to $42,403.
| Term | Payment | Total interest | Total cost |
|---|---|---|---|
| 36 months | $812 | $3,130 | $29,250 |
| 48 months | $632 | $4,195 | $30,315 |
| 60 months (selected) | $523 | $5,283 | $31,403 |
| 72 months | $452 | $6,396 | $32,516 |
| 84 months | $401 | $7,533 | $33,653 |
Longer terms lower the payment but raise total interest and keep you upside down for longer. If the car is totaled while you owe more than it is worth, gap insurance covers the difference.
Amortization schedule
| Payment # | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $523.39 | $163.25 | $360.14 | $25,760 |
| 2 | $523.39 | $161.00 | $362.39 | $25,397 |
| 3 | $523.39 | $158.73 | $364.66 | $25,033 |
| 4 | $523.39 | $156.46 | $366.94 | $24,666 |
| 5 | $523.39 | $154.16 | $369.23 | $24,297 |
| 6 | $523.39 | $151.85 | $371.54 | $23,925 |
| 7 | $523.39 | $149.53 | $373.86 | $23,551 |
| 8 | $523.39 | $147.20 | $376.20 | $23,175 |
| 9 | $523.39 | $144.84 | $378.55 | $22,797 |
| 10 | $523.39 | $142.48 | $380.91 | $22,416 |
| 11 | $523.39 | $140.10 | $383.29 | $22,032 |
| 12 | $523.39 | $137.70 | $385.69 | $21,647 |
How the loan amount is calculated
The amount you finance is the vehicle price, plus sales tax and fees, minus your down payment and trade-in credit. Most states tax the price after the trade-in is subtracted, which makes a trade-in worth slightly more than its appraised value.
Term length is a trade-off, not a discount
Stretching from 48 to 72 months can cut the payment by a quarter, but you pay interest for two extra years and you will be upside down on the loan for longer, owing more than the car is worth.
Being upside down matters because if the car is totaled or stolen, insurance pays market value, not your loan balance. Gap insurance covers that difference.
Where to get a rate
Dealer financing is convenient but not always competitive. Getting pre-approved at a credit union or bank before you shop gives you a benchmark and turns the finance office conversation into a comparison rather than a negotiation.
Frequently asked questions
Is a 72-month or 84-month car loan a bad idea?
It is not automatically bad, but it usually means you are buying more car than the payment budget supports. Long terms also keep you underwater longer, and repairs start arriving while you are still paying.
Should I take the dealer's 0% financing or the cash rebate?
Compare the rebate against the interest you would pay on an outside loan at a normal rate. If the rebate is larger than the total interest, take the rebate and finance elsewhere.
Do I need a down payment?
Not always, but 10 to 20 percent down avoids being immediately underwater, reduces the amount financed, and usually gets you a better rate.
What is gap insurance?
It covers the difference between what your car insurance pays if the vehicle is totaled and what you still owe on the loan. It makes sense when you put little down or finance for a long term.
This calculator is an educational tool and does not constitute financial, tax or legal advice. Results are estimates based on the inputs and assumptions described above. Verify important figures with a qualified professional or the relevant government agency before acting on them.