Auto Loan Payment Calculator: Total Cost Breakdown
Calculate your monthly car payment with sales tax, trade-in equity, and fees. Full auto loan guide with formula, examples, and total cost of ownership.
Auto Loan Payment Calculator — Direct Answer
Monthly payment = P × [r(1+r)^n] ÷ [(1+r)^n − 1]. For a $35,000 car with $5,000 down, 6.5% APR, 60-month term, payment is $587/month. Total interest paid = $5,219. Add sales tax, title, and registration — these often add $2,000–$4,000 to what you finance.
→ Calculate your car payment with our free auto loan calculator
How to Calculate Auto Loan Payment
Standard amortization formula for a fixed-rate loan.
M = P × [r(1+r)^n] ÷ [(1+r)^n − 1]
Where:
- M = monthly payment
- P = principal (loan amount after down payment and taxes)
- r = monthly interest rate (APR ÷ 12)
- n = total number of payments (months)
How to calculate the loan amount
The amount you finance = Vehicle price + fees + taxes − down payment − trade-in.
Example:
- Car price: $35,000
- Sales tax (6%): $2,100
- Title + registration: $400
- Total: $37,500
- Down payment: $5,000
- Loan amount: $32,500
How to apply the formula
Example: $32,500 at 6.5% for 60 months
- r = 0.065 ÷ 12 = 0.005417
- n = 60
- (1+r)^n = (1.005417)^60 = 1.3835
- M = 32,500 × (0.005417 × 1.3835) ÷ (1.3835 − 1)
- M = 32,500 × 0.007495 ÷ 0.3835
- M = $635.56/month
How to calculate total cost of loan
Total Paid = M × n
Total Interest = Total Paid − P
Example:
- Total paid = 635.56 × 60 = $38,133.60
- Total interest = 38,133.60 − 32,500 = $5,633.60
Auto Loan Payment Chart
Monthly payment by loan amount
| Loan | 3 yr @ 6% | 5 yr @ 6.5% | 6 yr @ 7% |
|---|---|---|---|
| $15,000 | $456 | $293 | $256 |
| $20,000 | $608 | $391 | $341 |
| $25,000 | $761 | $489 | $426 |
| $30,000 | $913 | $587 | $512 |
| $40,000 | $1,217 | $783 | $682 |
| $50,000 | $1,521 | $978 | $853 |
Total interest by term (on $30,000)
| Term | APR | Monthly | Total Interest |
|---|---|---|---|
| 36 mo | 6.0% | $913 | $2,868 |
| 48 mo | 6.25% | $708 | $3,984 |
| 60 mo | 6.5% | $587 | $5,219 |
| 72 mo | 7.0% | $512 | $6,864 |
| 84 mo | 7.5% | $461 | $8,723 |
Shorter terms save thousands in interest.
Sales tax by state (on $35,000 car)
| State | Tax Rate | Sales Tax |
|---|---|---|
| Oregon | 0% | $0 |
| Montana | 0% | $0 |
| New Hampshire | 0% | $0 |
| Alaska | 0% | $0 |
| California | 7.25% | $2,538 |
| Texas | 6.25% | $2,188 |
| Florida | 6% | $2,100 |
| New York | 4% | $1,400 |
Common Auto Loan Mistakes
Mistake 1: Financing taxes and fees
Rolling taxes into the loan increases the amount you pay interest on.
Fix: Pay taxes out of pocket if possible. Saves hundreds in interest.
Mistake 2: Taking the longest term offered
An 84-month loan at 7.5% costs $3,500 more in interest than a 60-month at 6.5%.
Fix: Choose the shortest term you can afford. Monthly payment isn't the only factor.
Mistake 3: Not negotiating the total price
Dealers quote monthly payments — this hides the total. Negotiate out-the-door price first.
Fix: Get the full out-the-door price. Then negotiate financing separately.
Dealer Financing vs Bank vs Credit Union
Dealer financing
- Rate: Higher (dealer markup)
- Convenience: One-stop
- Best for: Manufacturer incentives (0% APR)
Bank loan
- Rate: Medium
- Convenience: Pre-approved
- Best for: Used cars, better rate than dealer
Credit union
- Rate: Lowest
- Convenience: Membership required
- Best for: Best rates for members
Which should you choose?
Get pre-approved at a credit union before shopping. Compare to dealer offer. Dealers match or beat CU rates 60% of the time.
Auto Loan Payment FAQ
How do I calculate my car payment?
M = P × [r(1+r)^n] ÷ [(1+r)^n − 1] where P is loan amount, r is monthly rate, n is months.
What's the average car payment in 2026?
$700–$750 for new cars, $500–$550 for used. Terms average 68–72 months.
How much should I put down?
20% minimum for new cars, 10% for used. This avoids negative equity (being "underwater").
Does sales tax affect my car payment?
Yes. Sales tax is financed into most auto loans. A $35,000 car with 6% tax adds $2,100 to your loan → higher payment.
Can I negotiate the interest rate?
Yes, especially if you have good credit. Get pre-approved, then ask the dealer to beat it. Aim for 1–2% lower than first offer.
Next Steps for Your Auto Purchase
- Auto Loan Calculator — Full payment breakdown
- Sales Tax Calculator — State-specific tax
- Loan Calculator — General loans
- APR Guide — True cost
- Salary Guide — Affordability math
Last updated October 2026. Rates vary by credit score and lender — shop at least 3 lenders.