# What will my auto loan cost?

Computes the monthly payment, total interest, payoff date, and full payment schedule of a fixed-rate loan for the car.

- Page: https://www.acalculator.org/finance/auto-loan-calculator
- JSON spec: https://www.acalculator.org/finance/auto-loan-calculator.json
- Version: 2af6b3d58ee0

## Default answer

Example with the default inputs (Price of the car $30,000.00, Cash down $6,000.00, Trade-in value $0.00, Interest rate (APR) 5%, Loan start date October 5, 2026, Length of loan (months) 48, Sales tax rate 0%, Dealer and registration fees $0.00, Roll tax and fees into the loan Yes, Extra each month $0.00) on the example date Monday, October 5, 2026: Borrowing $24,000.00 at 5% APR over 48 months costs $552.70 a month, with $2,529.75 of interest in total.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| price | Price of the car | The price of the car before tax and fees. |
| down | Cash down | The cash you pay up front, which lowers the amount you borrow. |
| trade | Trade-in value | What the dealer pays for your current vehicle. It lowers the amount you borrow and the taxed price. |
| rate | Interest rate (APR) | The yearly interest rate of the loan. The monthly rate is this divided by 12. |
| start | Loan start date | The day the loan starts. The first payment is one month later. Leave it empty to number the payments without dates. |
| term | Length of loan (months) | The number of monthly payments, from 1 to 120. |
| tax | Sales tax rate | The sales tax rate, charged on the price minus the trade-in value. |
| fees | Dealer and registration fees | Fees and add-ons charged on top of the price, for example documentation and registration. |
| taxin | Roll tax and fees into the loan | When on, the sales tax and fees are borrowed. When off, you pay them up front. |
| extra | Extra each month | An extra amount paid with every payment. It goes straight to the balance. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| payment | Your monthly payment | The level monthly payment that repays the loan over its length, without extra payments. |
| payments | Number of payments | How many monthly payments it takes to repay the loan, with any extra payments. |
| payoff | Paid off in | The month of the last payment, when a start date is given. |
| each | You pay each month | The monthly payment plus any extra amount. The last payment is whatever is left, so it can be smaller. |
| span | Payments last | How many months of payments it takes to repay the loan, with any extra payments. |
| amount | Loan | The amount borrowed: price minus cash down and trade-in, plus tax and fees when rolled in. |
| interest | Interest | All the interest paid over the life of the loan. |
| paid | Total you’ll repay | The amount borrowed plus all the interest. |
| upfront | Paid up front | Cash down, plus the sales tax and fees when they are not rolled into the loan. |
| cost | What the car really costs | The price plus sales tax, fees, and all the interest. |
| saved | Interest saved by paying extra | The interest the extra monthly amount saves, compared with no extra payments. |
| sooner | Months saved by paying extra | How many months sooner the loan is paid off with the extra monthly amount. |

## Method

payment = L × r ÷ (1 − (1 + r)^−n), with L the amount borrowed, r the APR ÷ 12, and n the number of months; each month, interest = balance × r and the rest of the payment lowers the balance.

## Assumptions

- The rate is fixed for the whole loan and interest is charged monthly at APR ÷ 12.
- Payments are made at the end of each month, starting one month after the start date.
- Sales tax is charged on the price minus the trade-in value, as most US states do.
- Extra payments go straight to the balance; the last payment is whatever is left.
- Values are not rounded to the cent between months; only the display is rounded.

## Worked examples

1. price = $20,000.00, down = $0.00, trade = $0.00, rate = 5%, term = 60, start = 2026-10-01 gives payment = $377.42, interest = $2,645.48, paid = $22,645.48, payoff = 2031-10-01. Source: Consumer Financial Protection Bureau, Take control of your auto loan (auto loan guide). https://files.consumerfinance.gov/f/documents/cfpb_auto_loan_guide.pdf.
2. price = $30,000.00, down = $4,000.00, trade = $2,000.00, rate = 5%, term = 48, start = 2026-10-01 gives amount = $24,000.00, payment = $552.70, interest = $2,529.75, payoff = 2030-10-01. Source: Consumer Financial Protection Bureau, Take control of your auto loan (auto loan guide). https://files.consumerfinance.gov/f/documents/cfpb_auto_loan_guide.pdf.
3. price = $30,000.00, down = $4,000.00, trade = $2,000.00, rate = 0%, term = 48, start = 2026-10-01, tax = 6%, fees = $500.00, taxin = no gives amount = $24,000.00, payment = $500.00, interest = $0.00, upfront = $6,180.00, cost = $32,180.00. Source: Consumer Financial Protection Bureau, Take control of your auto loan (auto loan guide). https://files.consumerfinance.gov/f/documents/cfpb_auto_loan_guide.pdf.
4. price = $20,000.00, down = $0.00, trade = $0.00, rate = 6%, term = 36, start = 2026-10-01, extra = $100.00 gives payment = $608.44, payments = 31, saved = $289.25, sooner = 5. Source: Consumer Financial Protection Bureau, Take control of your auto loan (auto loan guide). https://files.consumerfinance.gov/f/documents/cfpb_auto_loan_guide.pdf.

## FAQ

### How do I calculate auto loan payments?

Auto loan payments are calculated using the formula: P = L[c(1 + c)^n]/[(1 + c)^n - 1], where P is the monthly payment, L is the loan amount, c is the monthly interest rate (annual rate ÷ 12), and n is the total number of payments. Our calculator handles this automatically when you enter the loan amount, interest rate, and loan term.

### What's the difference between APR and interest rate?

The interest rate is the basic cost of borrowing money, while APR (Annual Percentage Rate) includes the interest rate plus any additional fees like origination fees, processing fees, and other loan costs. APR gives a more complete picture of the loan's true cost. Always compare APRs when shopping for auto loans.

### How does a down payment affect my auto loan?

A larger down payment reduces your loan amount, which lowers your monthly payments and total interest costs. For example, on a $25,000 car, a $5,000 down payment means you only finance $20,000. This could save you hundreds or thousands in interest over the loan term.

### What is the best auto loan term length?

Shorter loan terms (36-48 months) typically have lower interest rates and less total interest paid, but higher monthly payments. Longer terms (60-72 months) have lower monthly payments but higher total interest costs. Choose based on your budget and how long you plan to keep the vehicle.

### How does my credit score affect auto loan rates?

Your credit score significantly impacts your auto loan interest rate. Lenders usually offer lower rates to borrowers with higher scores, so the same loan can cost much more with a low score. Improving your credit score before applying can save thousands in interest.

### Should I get pre-approved for an auto loan?

Yes! Getting pre-approved gives you negotiating power at the dealership and helps you know your budget. Pre-approval shows you're a serious buyer and can help you avoid high-pressure sales tactics. Compare rates from multiple lenders before choosing.

### What is negative equity and how does it work?

Negative equity occurs when you owe more on your current car than it's worth. If you trade in a car with negative equity, the remaining balance gets added to your new loan. This increases your new loan amount and monthly payments. It's often better to pay off negative equity before trading in.

### Are there prepayment penalties on auto loans?

Some auto loans have a prepayment penalty: a fee for paying the loan off early. Always check your loan agreement or contact your lender before making extra payments, and you can ask to have the penalty removed before you sign. A penalty can offset or eliminate your interest savings from early payoff.

### How do I calculate the total cost of my auto loan?

The total cost includes the principal amount plus all interest paid over the loan term. Our calculator shows this as 'Interest' and 'Total you’ll repay'. For example, a $20,000 loan at 5% for 60 months costs $2,645 in interest, making the total cost $22,645.

### What should I consider when choosing between leasing and buying?

Leasing typically has lower monthly payments but you don't own the car. Buying builds equity and you own the vehicle after the loan is paid. Consider your driving habits, how long you keep cars, and whether you want to customize or modify the vehicle. Leasing is often better for those who want a new car every few years.

## Sources

- Consumer Financial Protection Bureau, What is the difference between a loan interest rate and the APR? https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-loan-interest-rate-and-the-apr-en-733/
- Consumer Financial Protection Bureau, Can I prepay my loan at any time without penalty? https://www.consumerfinance.gov/ask-cfpb/can-i-prepay-my-loan-at-any-time-without-penalty-en-843/
- Consumer Financial Protection Bureau, Take control of your auto loan (auto loan guide). https://files.consumerfinance.gov/f/documents/cfpb_auto_loan_guide.pdf
- Amortized loan payment (annuity) formula: S. A. Broverman, Mathematics of Investment and Credit, chapter 3 (loan payment and amortization schedule).