How to use the auto loan calculator
- Enter the car price, your down payment and any trade-in value.
- Enter the APR the lender offers and choose the loan term.
- Optionally add your state’s sales tax and fees, and whether they are paid up front or rolled into the loan. In most states sales tax is charged on the price minus the trade-in.
Auto loan payment formula
M = L \times \dfrac{i}{1 - (1 + i)^{-n}}L– amount financed,i– APR ÷ 12,n– number of monthly payments
The payment is $594.04 a month, and the interest over the loan is $5,642.16.
Shorter or longer term?
| $30,000 at 7% | Monthly | Total interest |
|---|---|---|
| 36 months | $926.31 | $3,347 |
| 48 months | $718.39 | $4,483 |
| 60 months | $594.04 | $5,642 |
| 72 months | $511.47 | $6,826 |
| 84 months | $452.78 | $8,034 |
A longer loan lowers the payment but costs more interest – and cars lose value fast, so a 72- or 84-month loan can leave you owing more than the car is worth. Compare with the loan calculator or the sales tax calculator.
Frequently asked questions
What is the payment on a $30,000 car loan?
At 7% APR for 60 months, about $594.04 a month. At 5% it is about $566.14.
How much should I put down on a car?
About 20% for a new car and 10% for a used one is a common guideline – it lowers the payment and helps you avoid owing more than the car is worth.
Is sales tax included in a car loan?
It can be. Many buyers roll sales tax, title and registration fees into the loan; choose “Add to the loan” to include them.
What is a good auto loan rate?
It depends on your credit score and whether the car is new or used. Borrowers with excellent credit get the lowest rates; used-car loans and lower scores pay several points more.