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VeloxCalc

US Auto Loan Calculator

Estimate monthly car payments, total interest and the full cost of ownership including sales tax, trade-in equity and title fees with a complete amortization schedule.

$

MSRP or negotiated out-the-door price before rebates.

Down payment type
$
$

Estimate from KBB, Carvana or a dealer quote.

%

Typical new-car range: 3.5% – 9%.

months
%

Combined state + local rate, e.g. 7.25%.

$

Doc fee, title, registration and dealer add-ons.

Result

Monthly payment

$487.58

Loan amount
$25,900.00
Down payment
$7,000.00
Trade-in equity
$5,000.00
Sales tax
$2,100.00
Fees & title
$800.00
Total of payments
$29,254.75
Total interest
$3,354.75
Total cost of car
$41,254.75

Calculated with engine v1.0.0

Monthly payment $487.58 over 60 months. You pay $3,354.75 in interest for a total car cost of $41,254.75.

Amortization schedule
YearStart balancePaidPrincipalInterestEnd balance
1$25,900.00$5,850.96$4,686.17$1,164.79$21,213.83
2$21,213.83$5,850.96$4,921.02$929.94$16,292.82
3$16,292.82$5,850.96$5,167.63$683.33$11,125.19
4$11,125.19$5,850.96$5,426.62$424.34$5,698.57
5$5,698.57$5,850.96$5,698.58$152.37$0.00

How your auto loan payment is calculated

This US Auto Loan Calculator uses the industry-standard simple-interest amortization formula with equal monthly installments. Your loan principal is built from the vehicle sticker price, minus any down payment and trade-in equity, plus applicable sales tax (levied on the taxable difference in most states) and any title, registration or doc fees.

M = P × r·(1+r)n / [(1+r)n − 1]
where P = loan principal, r = annual rate ÷ 1200, n = months financed
Taxable base = max(Vehicle Price − Trade-in Value, 0)

A common term for a new car is 60 or 72 months; used cars are frequently financed over 36 to 60 months. Shortening the term always saves you interest over the life of the loan, even if the rate is identical.

What affects your monthly car payment

Trade-in equity vs. a cash down payment

Lowering the principal is the single strongest lever on your payment and total interest. A trade-in works identically to a cash down payment for principal reduction; depending on your state it may also reduce the taxable portion of the sale, because many jurisdictions tax Vehicle Price − Trade-in rather than the sticker alone.

The term trap: why 84 months sounds cheap but is expensive

Extending the loan term from 60 to 84 months will lower your monthly bill substantially, but you pay significantly more interest and spend years deeply underwater on depreciation. Running a few what-ifs (click the Schedule tab) is the fastest way to compare.

Title, doc fees and sales tax

These "out-the-door" extras are routinely financed and can easily add 5–10 % to the principal. Entry fields for title/doc fees and state-specific sales tax are included so the number the calculator shows matches the final contract.

Example scenario

$35,000 new SUV, $7,000 cash down, $5,000 trade-in, 4.9 % APR, 60 months, 7 % sales tax, $800 fees.

  • Taxable base = max(35,000 − 5,000, 0) = $30,000 → sales tax = $2,100
  • Loan principal = 35,000 + 2,100 + 800 − 7,000 − 5,000 = $25,900
  • Monthly P&I (4.9 %, 60 months) ≈ $485.85
  • Total payments ≈ $29,151 → total interest ≈ $3,251
  • Total cost of car (price + tax + fees + interest) ≈ $41,151

Switching from 60 to 72 months drops the payment to around $411, but adds roughly $740 in extra interest over the loan.

Interpreting the amortization schedule

The schedule breaks every month (or every year) into starting balance, principal paid, interest paid and ending balance. Early in the loan a larger share of your payment goes to interest; as the balance drops, principal becomes the dominant component. Paying an extra $50–$100 toward principal at the beginning of the term can shave months and hundreds of dollars off the total cost.

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