What will your auto loan really cost?
Compare your monthly car payment with the total interest, net trade-in equity and financeable dealer charges. A lower instalment can still mean higher total cost.
Vehicle price and loan details
Purely illustrative fixed nominal-rate amortization; no live lender offer, state tax computation, APR including mandatory fees, trade-in tax credit, negative trade equity, loan insurance, dealer financing incentives, prepayment penalties, daily interest accrual or variable rates. Optional running costs are separate estimates.
Illustration: a $38,000 vehicle, $5,000 cash deposit, $3,500 positive trade equity and $2,000 financed taxes/fees at an assumed 6.5% rate for 60 months. The 6.5% is an example, NOT an actual current lender quote.
Your full car financing picture
With vs without a balloon
Principal and interest by month
| Month | Interest | Principal repaid | Outstanding |
|---|---|---|---|
| 1 | $170.63 | $445.71 | $31,054.29 |
| 2 | $168.21 | $448.12 | $30,606.17 |
| 3 | $165.78 | $450.55 | $30,155.62 |
| 4 | $163.34 | $452.99 | $29,702.63 |
| 5 | $160.89 | $455.44 | $29,247.18 |
| 6 | $158.42 | $457.91 | $28,789.27 |
| 12 | $143.34 | $473.00 | $25,989.24 |
| 24 | $111.66 | $504.67 | $20,109.42 |
| 36 | $77.86 | $538.47 | $13,835.81 |
| 48 | $41.80 | $574.54 | $7,142.05 |
| 60 | $3.32 | $613.01 | $0.00 |
How to estimate an auto loan in the United States
- 01
Enter the negotiated vehicle price, cash down payment and NET trade-in equity. Net equity is the trade-in amount minus any finance settlement on your old car; if the trade has negative equity, do not force a negative value into this positive-equity model. Get a separate written dealer quote.
- 02
Enter only purchase taxes, title fees, documents or optional add-ons you actually intend to FINANCE. State sales tax and trade-in credits vary by state and are NOT automatically calculated here.
- 03
Enter the nominal contractual borrowing interest rate and your term in months. A lender's advertised APR can include mandatory fees and is NOT the same as an interest-only nominal annual rate.
- 04
Compare monthly payments and total interest. If you use a balloon amount, remember the final month's payment includes the regular instalment PLUS the balloon. Also budget for insurance, fuel, maintenance and registration.
Assumptions and disclosures
Purely illustrative fixed nominal-rate amortization; no live lender offer, state tax computation, APR including mandatory fees, trade-in tax credit, negative trade equity, loan insurance, dealer financing incentives, prepayment penalties, daily interest accrual or variable rates. Optional running costs are separate estimates.
Frequently asked questions
Does this automatically calculate state sales tax?
No. Sales-tax treatment of trade-ins and fees varies by state. Enter a verified amount of taxes and fees that would be financed, without adding them a second time to the vehicle price.
Is the annual interest rate the same as APR?
No. APR can include mandatory borrowing costs; this model uses nominal interest divided by 12. Compare APR and all-in finance charges on lender disclosures.
Does the trade-in field include an outstanding old loan?
No. Enter positive net trade equity after paying off the old lien. The calculator does not model rolling negative equity into a new loan.
Consumer Financial Protection Bureau — Compare auto loan costs
Illustrative inputs, not market loan offers · Purely illustrative fixed nominal-rate amortization; no live lender offer, state tax computation, APR including mandatory fees, trade-in tax credit, negative trade equity, loan insurance, dealer financing incentives, prepayment penalties, daily interest accrual or variable rates. Optional running costs are separate estimates.