Auto Loan Calculator with Taxes and Fees

How to Use This Auto Loan Calculator

Enter your vehicle price, down payment, and loan term, then select your state so the calculator can apply the correct sales tax and trade-in rules. Your monthly payment updates instantly as you type. If you're not sure of your APR, use the credit-tier presets based on early 2026 Experian data. Enter your monthly income in the optional field to get an affordability verdict based on the 20/4/10 rule.

The calculator shows the full out-the-door price breakdown so you can see exactly what's being financed. Compare 60, 72, and 84-month terms side by side to understand how much extra interest a longer term really costs. Click any term in the comparison grid to apply it. Expand the amortization schedule to see exactly how much of each payment goes to interest vs. principal each month.

How Auto Loan Payments Actually Work

Your monthly auto loan payment is calculated using a standard amortization formula that spreads the loan amount plus interest evenly over every payment. Early in the loan, most of each payment goes to interest because interest accrues on the outstanding balance. As you pay down the principal, the interest portion shrinks and more of each payment goes to paying off the car itself.

The formula is: monthly payment equals principal times r times (1 + r) to the n, divided by (1 + r) to the n minus 1, where r is your monthly interest rate (APR divided by 12) and n is the total number of months. Every lender in the country uses this exact math for standard simple-interest auto loans.

What's often misunderstood is the split between principal and interest in the early months. On a 72-month loan at 7% APR, more than 60% of your first payment goes to interest. That share gradually flips over the life of the loan. The amortization table in this calculator shows that breakdown month by month, so you can see exactly how much equity you're building at any point in time.

What APR Should I Expect in 2026?

As of Q1 2026, average auto loan APRs according to Experian and Edmunds are roughly:

• Super-prime (credit 781+): around 4.7% new, 7.4% used
• Prime (661-780): around 6.5% new, 9.7% used
• Near-prime (601-660): around 9.8% new, 14.1% used
• Subprime (501-600): around 13.3% new, 18.9% used
• Deep subprime (<500): around 16% new, 21.6% used

These are averages. Credit unions and captive manufacturer financing (Toyota Financial, Honda Finance, etc.) often offer lower rates than third-party lenders. Dealer-arranged financing is typically marked up, so it's worth getting pre-approved from your bank or credit union before you walk in. A 1% difference in APR on a $35,000 loan over 72 months is about $1,200 in extra interest — not trivial.

Does a Trade-In Reduce Sales Tax?

In 43 US states, yes: sales tax is applied to the vehicle price minus your trade-in value, which can save you hundreds or thousands in tax. For example, on a $40,000 car with a $15,000 trade-in at 6% sales tax, the tax is $1,500 (on the $25,000 net) instead of $2,400 (on the full price) — a $900 savings.

However, seven jurisdictions do not allow this trade-in tax credit:

• California — full price taxed
• Hawaii — full price taxed
• Kentucky — full price taxed
• Maryland — full price taxed
• Virginia — full price taxed (4.15% Motor Vehicle Sales and Use Tax, minimum $75)
• Washington DC — full price taxed
• Michigan — partial credit capped at approximately $10,000 in 2026 (the cap rises each year and the credit becomes unlimited starting 2028)

This calculator applies the correct rule automatically when you select your state, so you get an accurate figure either way. Dealers in credit states sometimes misquote this savings, so it's worth checking the math yourself.

Is a 72 or 84-Month Auto Loan a Bad Idea?

Longer loan terms are popular because they lower the monthly payment, but the trade-off is significant. In 2026, roughly 23% of new auto loans are 84 months or longer — an all-time high according to Edmunds. The problem is that longer terms front-load interest and keep you upside-down (owing more than the car is worth) for much longer than a shorter loan.

On a $35,000 loan at 7% APR, the math looks like this:

• 60 months: $693/month, total interest around $6,600
• 72 months: $597/month, total interest around $8,000 — about $1,400 more than 60 months
• 84 months: $528/month, total interest around $9,500 — about $2,900 more than 60 months

An 84-month loan also means you're often underwater on the vehicle for 4-5 years because cars depreciate faster than the loan amortizes. If you need to sell or total the car during that window, you'll have to cover the gap out of pocket or roll negative equity into your next loan — which is exactly how many buyers end up trapped in escalating debt.

The 20/4/10 rule recommends a term of no more than 48 months with a payment under 10% of gross monthly income. For most buyers that's aggressive, but 60 months is a reasonable ceiling for anyone who wants to stay ahead of depreciation. The side-by-side comparison in this calculator shows exactly what each term costs so you can make the call with open eyes.

Common Mistakes When Financing a Car

Focusing only on the monthly payment. Dealers know buyers anchor on the monthly number, and the "four-square" sales tactic exploits this by shuffling price, trade-in, rate, and term to hit your target payment — often by stretching the term and burying extras. Always negotiate the out-the-door price first, then discuss financing.

Rolling negative equity into a new loan. If you still owe more on your trade than it's worth, rolling that shortfall into the new loan means paying interest on debt for a car you no longer own. If possible, delay the trade until you're at or near zero equity.

Accepting dealer financing without shopping. Dealers earn a markup on interest rate from the lender, called a "reserve." Getting pre-approved from a bank or credit union gives you a benchmark and leverage. Sometimes the dealer will beat it; sometimes they won't. Either way, you know.

Adding GAP insurance or extended warranties to the loan. A $700 GAP policy rolled into a 72-month loan at 7% costs about $830 once you include the interest. These products may be worth buying, but never finance them — pay upfront or decline.

Assuming 0% financing is always the best deal. Manufacturers frequently offer either 0% APR or a cash rebate. On a $35,000 purchase, a $3,000 rebate is often worth more than 0% financing once you run the numbers against a competitive outside loan at 5-6%. Always compare.

About State Tax and Fees in This Calculator

The state dropdown auto-fills the base state sales tax rate and applies the correct trade-in credit logic. Rates are state-level only — many states (Illinois, Tennessee, Louisiana, Washington, New York, and others) have additional county or city taxes that can add 1-3% on top. If you know your local rate, you can override the tax field directly.

Fee defaults are reasonable averages. Title and registration fees vary by state and vehicle weight/value. Documentation fees ("doc fees") vary dramatically — from $85 in California (capped by state law) and $200 in Washington to $1,000+ in Florida and Alabama. The calculator shows a hint next to the doc fee field if your state has a statutory cap. Destination fees, manufacturer rebates, and add-ons like GAP insurance are not modeled — if applicable, adjust the vehicle price accordingly.

Privacy

Every calculation runs entirely in your browser. Your vehicle details, income, and loan information are never sent to any server or saved to any database. If you copy a link to share your scenario, the URL carries only the numbers you entered — and the link works on any device for anyone you share it with, because there's no login or stored state on our end.