FFinanceAvatar

Loans & auto

Auto Loan Calculator

Estimate a fixed-rate vehicle loan payment from the price, down payment, trade-in, tax, fees, APR, and term you enter. Results are educational estimates, not a loan offer or approval.

Last reviewed September 20, 2026

Vehicle and loan

Example starting numbers you can edit — not a recommendation or a current average. Results update as you type.

Enter the APR you want to model. FinanceAvatar does not supply a current auto-loan rate.

These lengths are common examples, not a recommendation.

Trade-in

Net trade-in equity is trade-in value minus the amount still owed. If you owe more than the trade-in is worth, that negative equity is added to the amount financed. It is not reduced to $0.

Tax and fees

Sales tax starts at 0% unless you enter a rate. That 0% is an editable example, not a U.S. average. Tax is applied to vehicle price plus taxable fees. Actual taxable amounts vary by state.

Fees you want included in the sales-tax base, such as some documentation charges.

Added to the amount financed, but not included in this tax estimate.

Estimated monthly payment

$483.32

Educational estimate, not a lender quote. This is principal and interest on the amount financed. It does not include insurance or other ownership costs.

Amount financed
$25,000.00
Vehicle price
$30,000.00
Down payment
$5,000.00
Net trade-in equity
$0.00
Estimated sales tax
$0.00 (0%)
Fees
$0.00
Total principal
$25,000.00
Total interest
$3,999.23
Total principal + interest
$28,999.23
Loan term
60 months · 60 payments

How the amount financed is built

  • Vehicle price$30,000.00
  • Estimated sales tax$0.00
  • Fees$0.00
  • Down payment-$5,000.00
  • Net trade-in equity-$0.00
  • Amount financed$25,000.00

48 vs. 60 vs. 72 months

This comparison keeps your amount financed and entered APR the same so you can see the effect of term length alone. Actual APR offers often differ by term, credit, vehicle, and lender. No term is labeled better.

48-month term

Monthly payment
$587.13
Total interest
$3,182.00
Principal + interest
$28,182.00

60-month term

Monthly payment
$483.32
Total interest
$3,999.23
Principal + interest
$28,999.23

72-month term

Monthly payment
$414.32
Total interest
$4,831.23
Principal + interest
$29,831.23

Amortization summary

The yearly summary shows how much of each year goes to principal and interest. Open a year to see that year’s monthly rows. This estimate uses 60 monthly payments.

Annual mortgage amortization summary
YearPrincipalInterestEnding balanceDetails
1$4,420.07$1,379.77$20,579.93
2$4,692.72$1,107.12$15,887.21
3$4,982.11$817.73$10,905.10
4$5,289.41$510.43$5,615.69
5$5,615.69$184.18$0.00

This estimate is for educational and informational purposes. FinanceAvatar is not a lender. Actual loan terms, rates, taxes, fees, add-ons, and lender calculations may differ. The result is not a loan offer or approval.

How auto loan payments work

A typical auto loan is a fixed-rate installment loan secured by the vehicle. Each monthly payment covers interest first, then principal. The CFPB explains that early payments are more interest-heavy, and a longer term usually lowers the monthly payment while increasing total interest.

Amount financed

The amount financed is the principal the payment is based on. In this calculator it is:

vehicle price − down payment − net trade-in equity + estimated sales tax + fees

Net trade-in equity can be negative. The CFPB’s auto-loan comparison guidance emphasizes looking at the amount financed, APR, and term—not only the monthly payment.

Down payment

Cash down reduces the amount financed. It does not change the vehicle price. A larger down payment usually lowers the monthly payment and total interest if the APR and term stay the same.

Trade-in equity and negative equity

Net trade-in equity = trade-in value − amount owed on that vehicle. Positive equity reduces what you finance. Negative equity means you still owe more than the trade-in is worth; that leftover balance is added to the new loan. This tool does not silently treat negative equity as zero.

Sales tax and fees

You enter the sales-tax rate. The default 0% is an editable example, not a claimed U.S. average. Tax is estimated on vehicle price plus any taxable fees you enter. Other fees are added to the amount financed but are not taxed here. States and localities differ on whether trade-ins reduce the taxable base, which fees are taxable, and when tax is due. This is not a state-by-state tax engine.

APR

You supply the annual rate. FinanceAvatar does not display a current auto-loan rate. The CFPB notes that APR includes more of the cost of credit than the interest rate alone. This calculator uses the rate you type as a fixed monthly compounding rate for amortization.

Term length and total interest

Supported terms are 36, 48, 60, 72, and 84 months because those lengths are commonly used, not because they are recommended. The on-page comparison holds APR and amount financed constant across 48, 60, and 72 months. Lenders often price those terms differently.

What the calculator does not include

  • Auto insurance, extended warranties, or dealer add-ons unless you enter them as fees
  • Gap insurance, title, registration, or local fees unless you enter them
  • A looked-up state tax table or trade-in tax credit
  • Variable-rate, balloon, or lease payments
  • Credit, income, or lender eligibility checks

The FTC similarly cautions buyers to compare APR, term, and amount financed rather than focusing only on the monthly payment.

How the payment is calculated

After the amount financed is set, the monthly payment uses the same fixed-rate formula as other FinanceAvatar installment tools:

M = P[r(1+r)^n] / [(1+r)^n − 1]

If the rate is 0%, M = P / n. See the site Calculator Methodology page.

Assumptions and limitations

  • The loan is a fixed-rate, fully amortizing installment loan.
  • Payments are monthly.
  • Negative trade-in equity is added to the amount financed.
  • Sales tax is estimated on vehicle price plus taxable fees only.
  • Amounts are rounded to the nearest cent.

Auto loan calculator FAQ

How accurate is this auto loan calculator?

It is accurate for the fixed-rate amortization math and the numbers you enter. It is not a dealer or lender quote. Insurance, add-ons, and local tax rules can change the real payment.

What is the amount financed?

The amount financed is the loan principal after price, down payment, net trade-in equity, estimated sales tax, and fees. The monthly payment is based on that amount, not the sticker price alone.

How is negative trade-in equity handled?

Net trade-in equity is trade-in value minus the amount still owed. If you owe more than the trade-in is worth, the negative amount is added to the amount financed. It is not reduced to zero.

Does the calculator use my state’s sales tax?

No. You enter a rate, and tax is applied to vehicle price plus taxable fees. Some states tax a different base or give a trade-in credit. This is not a state-by-state tax engine.

Does the payment include auto insurance?

No. Lenders typically require insurance, but it is a separate ownership cost and is not added here.

Why can a dealer’s payment differ from this estimate?

APR, term, amount financed, add-ons, tax treatment, and fees can all differ. Compare the APR, amount financed, and total of payments—not only the monthly payment.

Sources

These agencies do not review or operate FinanceAvatar. See also the site Sources page.

Disclaimer

Results are estimates for educational and informational purposes. Actual loan terms, rates, taxes, fees, add-ons, and lender calculations may differ. FinanceAvatar is not a lender, and this result is not a loan offer, approval, or individualized financial advice. Read the site Disclaimer and Methodology.

Related tools

Loan CalculatorMortgage CalculatorLoans & auto tools