Work out your monthly car payment from the price, down payment, APR, and term — then add sales tax, dealer and registration fees, a cash rebate, and a trade-in (including negative equity) to see the real amount financed, the cash due today, your total out-of-pocket cost, and your negative-equity risk. Compare terms, weigh a rebate against a low APR, check what you can afford, and export an Excel report — in any currency.
A cash rebate reduces the loan. A trade-in's value (minus what you still owe on it) is net equity; if you owe more than it is worth, that is negative equity.
$
Manufacturer or dealer cash reduces the amount financed.
$
The allowance for your current vehicle.
$
The loan still owed on the trade.
Net trade-in equity of $6,000 is applied like a down payment.
Ownership costs (optional)None yetEdit
Add estimated monthly insurance, fuel/energy, and maintenance to see your true monthly cost of ownership — these are not part of the loan.
Based on an assumed 18%/yr depreciation, the loan balance is projected to stay at or below the vehicle's value for the whole term — so you are unlikely to be underwater.
Educational estimate — taxes, fees, rebates, and lender terms vary. Not a loan offer.
Deal breakdown
How the amount financed and the cash due today are built from the price, taxes, fees, rebate, and trade-in.
Auto loan deal breakdown in USD
Vehicle pricecash
+ $35,000
Less: cash rebate / incentivereduces loan
− $1,500
Taxable amount (after trade-in credit)
$25,000
Sales tax (7%)financed
+ $1,750
Dealer / documentation feesfinanced
+ $600
Title & registration feesfinanced
+ $400
Less: down paymentreduces loan
− $5,000
Less: net trade-in equityreduces loanTrade-in value minus what you still owe on it.
− $6,000
Amount financed
$25,250
Amount financed
$25,250
Upfront due today
$5,000
Total purchase cost
$37,750
Price + tax + fees
Total out-of-pocket
$34,643
All cash you pay
Sales / VAT tax treatment of trade-ins and rebates varies by state/region. This taxes the price less the trade-in value (when the trade-in tax credit is on) and does not reduce the taxable price by the rebate. Confirm your local rule.
Visual breakdown
Each chart has a data table beneath it for exact figures and screen readers.
Principal vs interest
How much of the loan is the amount financed versus interest.
Principal vs interest
Amount
Principal financed
$25,250
Interest
$4,393
You finance $25,250 and pay $4,393 in interest.
Show data table
Principal vs interest — data table
Amount
Principal financed
$25,250
Interest
$4,393
Total cost breakdown
What makes up the money you spend: vehicle (net of rebate), tax, fees, and interest.
Total cost breakdown
Component
Amount
Vehicle
$33,500
Tax
$1,750
Fees
$1,000
Interest
$4,393
Tax, fees, and interest add $7,143 on top of the vehicle.
Show data table
Total cost breakdown — data table
Component
Amount
Vehicle
$33,500
Tax
$1,750
Fees
$1,000
Interest
$4,393
Loan balance vs vehicle value
Your loan balance falling, against an estimated vehicle value. Where the balance is above the value, you are underwater.
Balance vs value
Month
Balance
Value
1
$24,893
$34,426
3
$24,172
$33,306
5
$23,444
$32,222
7
$22,708
$31,174
9
$21,964
$30,160
11
$21,212
$29,179
13
$20,451
$28,229
15
$19,683
$27,311
17
$18,906
$26,422
19
$18,120
$25,563
21
$17,326
$24,731
23
$16,524
$23,926
25
$15,713
$23,148
27
$14,892
$22,395
29
$14,063
$21,666
31
$13,225
$20,961
33
$12,378
$20,279
35
$11,522
$19,620
37
$10,656
$18,981
39
$9,781
$18,364
41
$8,897
$17,766
43
$8,003
$17,188
45
$7,099
$16,629
47
$6,185
$16,088
49
$5,262
$15,565
51
$4,328
$15,058
53
$3,384
$14,568
55
$2,430
$14,094
57
$1,466
$13,636
59
$491
$13,192
60
$0
$12,976
The balance stays at or below the estimated value the whole term.
Show data table
Loan balance vs vehicle value — data table
Month
Balance
Value
1
$24,893
$34,426
3
$24,172
$33,306
5
$23,444
$32,222
7
$22,708
$31,174
9
$21,964
$30,160
11
$21,212
$29,179
13
$20,451
$28,229
15
$19,683
$27,311
17
$18,906
$26,422
19
$18,120
$25,563
21
$17,326
$24,731
23
$16,524
$23,926
25
$15,713
$23,148
27
$14,892
$22,395
29
$14,063
$21,666
31
$13,225
$20,961
33
$12,378
$20,279
35
$11,522
$19,620
37
$10,656
$18,981
39
$9,781
$18,364
41
$8,897
$17,766
43
$8,003
$17,188
45
$7,099
$16,629
47
$6,185
$16,088
49
$5,262
$15,565
51
$4,328
$15,058
53
$3,384
$14,568
55
$2,430
$14,094
57
$1,466
$13,636
59
$491
$13,192
60
$0
$12,976
Monthly payment by term
The same amount financed and APR across common terms — longer terms lower the payment but raise total interest.
Payment by term
Term
Payment
Interest
36mo
$774
$2,610
48mo
$599
$3,492
60mo
$494
$4,393
72mo
$424
$5,310
84mo
$375
$6,246
From $774/mo at the shortest term to $375/mo at the longest.
Show data table
Monthly payment by term — data table
Term
Payment
Interest
36mo
$774
$2,610
48mo
$599
$3,492
60mo
$494
$4,393
72mo
$424
$5,310
84mo
$375
$6,246
Compare loan terms
Same amount financed and APR across common terms. A lower monthly payment usually means more total interest and longer underwater.
Auto loan term comparison in USD
Term
Monthly payment
Total interest
Total paid
Extra interest vs shortest
Risk note
36 mo
$773.89
$2,610
$27,860
—
Higher payment, least interest. Builds equity fastest.
48 mo
$598.80
$3,492
$28,742
+ $882
Higher payment, least interest. Builds equity fastest.
60 mo · yours
$494.05
$4,393
$29,643
+ $1,783
A common balance of payment and total interest.
72 mo
$424.45
$5,310
$30,560
+ $2,700
Lower payment, more interest; higher chance of being underwater.
84 mo
$374.95
$6,246
$31,496
+ $3,636
Lowest payment, most interest; long stretch likely underwater — highest risk.
Cash rebate vs low APR
Manufacturers often let you take either a cash rebate or a low promotional APR — not both. This compares the total cost of each over your term (60 months), on a $26,750 loan before the rebate.
$
Offered if you skip the low APR.
%
The rate you'd finance at if you take the rebate.
%
The manufacturer's low rate.
Rebate vs low APR comparison in USD
Metric
Take the rebate
Take the low APR
Loan principal
$25,250
$26,750
APR used
6.50%
1.90%
Monthly payment
$494.05
$467.70
Total cost over term
$29,643
$28,062
The 1.9% promotional rate costs about 1,581 less over the loan than taking the 1,500 rebate at 6.5%. A low APR often wins on larger or longer loans, where the interest savings outweigh the rebate.
How much car can I afford?
A guideline from your income, target payment share, existing debts, and running costs. Not financial advice — lenders weigh your whole picture.
$
After-tax income each month.
%
A common ceiling is ~15% of take-home.
$
Other loans / card minimums.
$
Optional — a payment you're aiming to stay under.
Enter your monthly take-home income to estimate a comfortable car payment and maximum loan. Running costs used: $0/mo (from the ownership section above).
Amortization schedule
The first 12 months show by default. Open the full schedule for every payment, or the yearly summary for a compact view.
An auto loan calculator estimates your monthly car payment and total cost from the price, down payment, interest rate, and term — and, here, the full deal structure: trade-in and negative equity, sales tax, fees, the real amount financed, the cash due today, and your underwater risk.
Quick answers
What is an auto loan calculator?
An auto loan calculator estimates your monthly car payment and total cost from the vehicle price, down payment, interest rate (APR), and term. This one also handles the real structure of a car deal — sales tax, dealer and registration fees, a cash rebate, and a trade-in (including negative equity) — so it shows the true amount financed, the cash due today, your total out-of-pocket cost, and your underwater risk.
Is a 72-month car loan bad?
Not automatically, but longer terms carry more risk. A 72- or 84-month loan lowers the monthly payment but increases total interest and keeps you underwater — owing more than the car is worth — for longer, because cars depreciate faster than a long loan pays down. If you sell, trade, or total the car early, you can owe more than it is worth. Compare terms and watch the total interest, not just the payment.
How much should I put down on a car?
There is no single rule, but a larger down payment lowers the amount financed, the interest you pay, and your underwater risk. A common guideline is around 20% down on a new car and 10% on a used car, though what matters most is whether the resulting payment and total cost fit your budget. This tool shows how your down payment changes the payment, total cost, and underwater months.
What fees are included in an auto loan?
Typical fees are dealer/documentation fees, title and registration fees, and sometimes other charges. Sales tax is separate from fees. Any of these can be financed (rolled into the loan) or paid upfront. Optional add-ons such as gap insurance, extended warranties, or service plans are not included here unless you add them as a fee — they are negotiable, not mandatory.
How to use this auto loan calculator
Enter the vehicle and loan. Add the vehicle price, whether it is new or used, your down payment, the APR, and the term in months.
Add taxes and fees. Enter the sales-tax rate and dealer, title/registration, and any other fees, then choose whether to finance them or pay them upfront.
Add a trade-in and rebate. Enter any cash rebate, your trade-in value, and the amount still owed on it. If you are underwater on the trade, choose whether to roll the negative equity into the new loan.
Check ownership cost and affordability. Optionally add monthly insurance, fuel, and maintenance, and your income, to see your total monthly cost and whether the payment fits your budget.
Read the results and export. See the payment, amount financed, total cost, and underwater risk; compare terms and rebate-vs-APR; then download the Excel report.
The auto loan formula
Monthly payment
payment = P × i(1+i)ⁿ / ((1+i)ⁿ − 1)
P is the amount financed, i the monthly rate (APR ÷ 12 ÷ 100), n the number of months. At 0% APR it becomes P / n.
Amount financed
P = price − rebate − down − trade equity (+ tax/fees, + neg. equity if financed)
Reductions lower the loan; financed taxes, fees, and rolled negative equity raise it.
Sales tax
tax = (price − trade-in credit) × tax rate
The trade-in credit applies where your state reduces the taxable price by the trade-in value. Rules vary by state.
Interest & principal each month
interest = balance × i; principal = payment − interest
Ending balance = balance − principal − any extra payment, never below zero.
A practical guide to car loans
How auto loan payments are calculated
A car loan is amortized: each monthly payment first covers the interest on the balance you still owe, and whatever is left reduces the principal. Early payments are mostly interest; later payments are mostly principal. The fixed monthly payment is set so the balance reaches exactly zero at the end of the term.
The payment depends on three things: the amount financed, the interest rate (APR), and the term. Lowering the amount financed (a bigger down payment, rebate, or trade-in) or shortening the term reduces the interest you pay; a lower APR reduces the payment without extending the term.
Why the loan term changes the total interest
Stretching a loan over more months makes each payment smaller, which is why dealers often quote 72- or 84-month terms. But you pay interest for longer and on a balance that falls more slowly, so the total interest rises — sometimes by thousands. The term comparison on this page shows the same loan over 36 to 84 months side by side.
A smaller monthly payment can feel affordable while quietly costing far more overall. Compare the total interest and total cost across terms, not just the monthly figure.
How the down payment affects payment and negative equity
A larger down payment reduces the amount financed, so both the monthly payment and the total interest fall. It also protects you from negative equity: because a new car loses value quickly in the first year or two, a small or zero down payment can leave you owing more than the car is worth for much of the loan.
Putting more down — or choosing a shorter term — keeps your loan balance closer to the car’s value and shortens the time you spend underwater.
How trade-in value and the amount owed affect the loan
Your trade-in’s net equity is its value minus the loan you still owe on it. Positive equity acts like an extra down payment and reduces the amount financed. If you owe more than the trade is worth, that is negative equity.
Rolling negative equity into the new loan adds it to the amount financed, so you start the new loan already underwater and pay interest on the old shortfall. Paying the negative equity in cash instead keeps the new loan healthier. This tool lets you see both.
Cash rebate vs low APR — how to compare
A manufacturer often offers either a cash rebate or a low promotional APR, not both. The right choice is the one with the lower total cost over your term. A rebate reduces the amount you finance immediately; a low APR reduces the interest on the full amount over time.
As a rule of thumb, a rebate tends to win on smaller or shorter loans and when the regular rate is not much higher than the promo rate, while a low APR tends to win on larger or longer loans. The rebate-vs-APR tool on this page compares the total cost of each for your numbers.
Taxes and fees: financed or paid upfront
Sales tax and fees can be paid in cash at signing or rolled into the loan. Financing them keeps your upfront cash lower but increases the amount financed and the interest you pay over the term. Paying them upfront costs more today but less overall.
How much sales tax you owe — and whether a trade-in reduces the taxable amount — depends on your state. This calculator taxes the price (less the trade-in value where the trade-in tax credit applies) and assumes a rebate does not reduce the taxable price, which is the more common US treatment; confirm the rules where you buy.
New vs used car financing
Used-car loans usually carry higher interest rates than new-car loans and shorter maximum terms, but the vehicle has already taken its steepest depreciation, so negative-equity risk can be lower for a given down payment. New cars often qualify for promotional low-APR financing and rebates, but lose value fastest in the first year.
Whichever you choose, the same math applies — compare the amount financed, APR, term, total interest, and total cost.
Dealership financing vs direct lending
You can finance through the dealer or arrange your own loan from a bank or credit union (direct lending). Getting preapproved before you shop gives you a rate to beat and separates the price negotiation from the financing. Dealers may match or beat a preapproval, but the convenience of dealer financing can come with a higher rate or added products.
Compare the APR and total cost of any dealer offer against your preapproval, and treat add-ons such as gap insurance or extended warranties as optional and negotiable.
How to avoid overpaying — and when a low payment is dangerous
Negotiate the vehicle price first, then financing, and judge offers by the total cost — the price plus tax, fees, and all the interest — not the monthly payment. A long term or rolled-in costs can shrink the payment while raising what you ultimately pay.
A low monthly payment is dangerous when it comes from a long term or financing everything: it can leave you underwater for years and paying far more in interest. Use the term comparison and the underwater estimate here to see the trade-off before you sign.
Worked examples
1. New car with a trade-in, taxes and fees financed
A $35,000 new car at 6.5% APR over 60 months, with $5,000 down, a $1,500 rebate, a $10,000 trade-in on which $4,000 is owed, 7% sales tax (trade-in credit applied) and $1,000 of fees, all financed.
Sales tax: $1,750 (on $35,000 − $10,000)
Amount financed: $25,250; cash due today: $5,000
Monthly payment: about $494; total interest: about $4,393
Total out-of-pocket: about $34,640 — less than the sticker, because the rebate and $6,000 of trade equity offset the tax, fees, and interest
Common mistake: celebrating the low payment without noticing taxes and fees added $2,750 to the loan.
2. Used car, underwater trade-in not rolled in
A $22,000 used car at 9% APR over 72 months, $1,000 down, a $6,000 trade-in with $9,000 owed (so $3,000 negative equity), 8% tax and $1,000 fees paid in cash, no trade-in tax credit.
Amount financed: $21,000; cash due today: $6,760 (down + tax + fees + the $3,000 negative equity)
Monthly payment: about $379; total interest: about $6,255
Common mistake: rolling that $3,000 negative equity into the loan to lower the cash due — it would start the new loan $3,000 underwater.
3. A 0% promotional APR
A $40,000 car at 0% APR over 36 months with $20,000 down, 6% tax and $1,050 fees financed.
Amount financed: $23,450; total interest: $0
Monthly payment: about $651 (simply $23,450 ÷ 36)
Compare: if a $2,500 rebate were offered instead of 0%, the rebate-vs-APR tool shows which costs less.
Common mistakes to avoid
Looking only at the monthly payment instead of the total cost (price + tax + fees + interest).
Ignoring how much total interest a longer term adds, even when the rate looks low.
Rolling negative equity from an old loan into a new one, starting the new loan underwater.
Taking a 72- or 84-month term without checking how long you will owe more than the car is worth.
Not getting a bank or credit-union preapproval to compare against dealer financing.
Forgetting insurance, fuel, and maintenance — the real monthly cost of ownership is more than the loan payment.
Treating dealer add-ons (gap insurance, warranties, paint protection) as mandatory rather than optional and negotiable.
Decision checklist — before you sign an auto loan
Run through these before committing. This is a checklist to help you think, not financial advice.
The APR — and how it compares to a bank or credit-union preapproval
The loan term, and the total interest it implies
The total amount financed (after down payment, rebate, and trade-in)
The total cost including sales tax and all fees
Whether the loan has any prepayment penalty
Which dealer add-ons are included, and whether you actually want them
Whether you are required to carry specific insurance, and its cost
Registration and title fees, and who pays them
Whether a cash rebate or a low APR saves you more over the term
Whether the monthly cost of ownership — payment plus insurance, fuel, and maintenance — fits your budget
What this calculator does not include
This calculator models a fixed-rate auto loan with monthly payments and monthly compounding. It estimates sales tax from the rate you enter, but the exact tax and the treatment of trade-ins and rebates depend on your state. The negative-equity estimate uses an assumed depreciation rate and is not a forecast of your vehicle’s value.
Not included by default: gap insurance, extended warranties or service contracts, variable-rate changes, late fees, lender-specific charges, and ongoing insurance, fuel, and maintenance unless you enter them. Results depend entirely on the values you enter and the assumptions listed.
Frequently asked questions
How is a car loan monthly payment calculated?
Payment = P × i(1+i)ⁿ ÷ ((1+i)ⁿ − 1), where P is the amount financed, i is the monthly rate (APR ÷ 12 ÷ 100), and n is the number of months. Interest is charged on the balance you still owe each month, and the rest of the payment reduces the principal. At a 0% APR, the payment is simply P ÷ n.
What does the “amount financed” include?
It is the vehicle price plus any sales tax and fees you finance and any negative equity you roll in, minus your down payment, cash rebate, and net trade-in equity. The payment and interest are based on this amount, not the sticker price.
Should I roll sales tax and fees into the loan?
Financing taxes and fees lowers your upfront cash but raises the amount financed and the interest you pay over the term. Paying them upfront costs more today but less overall. This calculator shows both — toggle “Finance taxes and fees in the loan” to compare.
How does a trade-in affect my auto loan?
Your trade-in’s net equity (its value minus what you still owe on it) reduces the amount financed like a down payment. If you owe more than the trade is worth, that negative equity must be paid in cash or rolled into the new loan; rolling it in means you start the new loan underwater.
Is it better to take the rebate or the low APR?
Compare the total cost of each over the same term, since you usually cannot take both. A rebate often wins on smaller or shorter loans; a low APR often wins on larger or longer ones. Use the rebate-vs-APR tool on this page with your own numbers.
What is negative equity and why is it risky?
Negative equity means you owe more than the car is worth. If you sell, trade, or total the car while underwater, you must cover the gap out of pocket — and insurance only pays the car’s value, not your loan balance. A bigger down payment and a shorter term reduce the time you spend underwater.
How accurate is the negative-equity (underwater) risk?
It is an estimate. The tool projects the vehicle’s value from an assumed depreciation rate and compares it to your loan balance each month. Real depreciation is front-loaded and varies by make, model, mileage, and condition, so treat the risk level as a directional signal, not a forecast of your car’s value.
Does the calculator include insurance, fuel, and maintenance?
Only if you add them. The optional ownership-cost fields let you enter monthly insurance, fuel/energy, and maintenance so the tool can show your estimated total monthly cost of ownership alongside the loan payment. They are not part of the loan itself.
How much car can I afford?
As a guideline, keep the car payment within about 15% of your monthly take-home pay, and keep your total debt payments comfortably within your income. The affordability tool on this page estimates a comfortable payment and a maximum loan from your income, target share, existing debts, and running costs — as a guideline, not advice.
Will my dealer or lender’s numbers match exactly?
They may differ slightly. Lenders and dealers round, time payments, and classify taxes and fees in their own way, and state tax rules vary. Use this calculator as a close estimate for comparing deals, and rely on your signed paperwork for exact figures.
Does the currency or region setting change the math?
No. The currency and region wording (EMI vs monthly payment, sales tax vs GST) change labels and the default currency only. The underlying amortization and deal math are identical in every currency. Local tax rules still vary, so confirm them where you buy.
Can I download the results?
Yes. The Download XLSX Report button builds a 10-sheet Excel workbook from your inputs — summary, inputs, deal breakdown, the full amortization schedule (with live formulas), a yearly summary, term comparison, rebate-vs-APR, affordability, chart data, and the methodology and disclaimer. It is generated in your browser with no sign-in or upload.
Related calculators
Tools that build on the same loan and interest math:
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APR CalculatorTurn a loan rate plus fees into the true annual percentage rate so you can compare offers on equal terms.
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Sources & methodology
This calculator uses standard fixed-rate amortization. Sales tax is charged on the price less the trade-in value where the trade-in tax credit applies; rebates are assumed not to reduce the taxable price. Inputs are user-entered; results are estimates, not a loan offer or tax determination. Links open in a new tab.
Last reviewed: 14 June 2026. Formula and assumptions reviewed for accuracy. First published 8 June 2026.
Finance disclaimer
This calculator is for educational and estimation purposes only. It is not financial, lending, tax, accounting, or legal advice and is not a loan offer or approval. It models a fixed-rate auto loan with monthly payments. Actual loan terms, APR, sales tax, registration and title costs, dealer charges, rebates, insurance, and a lender’s rules can change actual results, and sales-tax treatment of trade-ins and rebates varies by state. The negative-equity (underwater) estimate relies on an assumed depreciation rate and is not a forecast. Confirm all numbers with your dealer, lender, and tax authority before making a financial decision.
Built and maintained by Calculator Matters, an independent calculator project. Method checked against standard amortization formulas and CFPB, Federal Reserve, and FTC guidance · Updated 14 June 2026 · How we calculate · Found an error? [email protected]
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