Car Loan Amortization Calculator

Q: What if I pay the tax and fees in cash instead of financing them?

Set Additional Fees to 0 and set the Sales Tax Rate to 0. Then the loan only covers the car itself. Paying tax and fees up front means you do not pay interest on them, which saves money.

Updated Aug 1, 2026 By Jehan Wadia

Introduction

Buying a car is a big deal. Before you sign, you should know what the loan will really cost you. This Car Loan Amortization Calculator shows you that in seconds.

Type in the car price, your down payment, your trade-in, the sales tax, any fees, the rebate, the interest rate (APR), and how long you want to pay. The calculator does the math and gives you:

Your monthly car payment
The total interest you will pay
The total cost of the loan
Your payoff date
A full month-by-month amortization schedule

You can also add an extra payment each month. The tool then shows how much interest you save and how many months you cut off the loan. Small extra payments can save you a lot — see our Extra Payment Calculator and Auto Loan Payoff Calculator for more ways to model this.

Want to compare two deals? Flip on Compare Two Scenarios. Put a 60-month loan next to a 72-month loan, or one rate next to another, and see them side by side. Charts show where your money goes and how your balance drops over time. You can download the whole schedule as a CSV or Excel file to keep or share. For a quicker estimate without the full table, try the Auto Loan Calculator, or the Used Car Loan Calculator if you are shopping pre-owned.

How to use our Car Loan Amortization Calculator

Enter your car price, down payment, trade-in, tax, fees, rebate, interest rate, loan term, and start date. The car loan calculator shows your monthly payment, total interest, total loan cost, payoff date, charts, and a full month-by-month amortization schedule you can download.

Compare Two Scenarios: Turn this switch on to fill in a second loan and see both side by side, like a 60-month loan versus a 72-month loan.

Vehicle Price: Type the price of the car before tax, fees, or any discount. Not sure what you can spend? Check the Car Affordability Calculator first.

Down Payment: Type the cash you pay up front. Pick "$ Amount" to enter dollars or "% of Price" to enter a percent. More money down means a smaller loan. Our Down Payment Calculator helps you pick a target.

Trade-In Value: Type the credit the dealer gives you for your old car. Leave it at 0 if you have no trade-in. The Trade In Value Calculator and Used Car Value Calculator can help you estimate that number.

Sales Tax Rate: Type your state or local tax rate as a percent. Tax is figured on the price after the rebate and is added to the loan. Use the Sales Tax Calculator if you need to look up the dollar amount.

Additional Fees: Type doc fees, title, registration, dealer prep, and any warranty cost. These get added to the amount you finance. The DMV Fee Calculator is handy for title and registration costs.

Rebate / Discount: Type any cash back from the maker or a dealer discount. It is taken off the price before tax.

Annual Interest Rate (APR): Type the yearly rate your lender gives you, from 0% to 30%. Our APR Calculator explains how fees can push your true rate higher.

Loan Term: Choose "Months" or "Years," then type how long you will pay. You can also tap a quick button like 36, 60, or 72 months. A longer term lowers the payment but costs more interest.

Loan Start Date: Pick the month and year of your first payment so the schedule and payoff date use real dates.

Additional Monthly Payment: Type any extra dollars you plan to pay each month. The calculator shows how much interest and time you save.

Click Calculate to see your results, or Reset to start over. Use the Download CSV or Download Excel buttons to save your amortization schedule.

What Is Car Loan Amortization?

Amortization is the plan that pays off your car loan a little at a time. Each month you make the same payment. Part of it pays the interest the bank charges. The rest pays down the money you borrowed, called the principal. As the principal drops, the interest drops too. So each month, more of your payment goes to the car and less goes to the bank. By the last payment, the loan hits zero. The same idea drives home loans — see the Mortgage Amortization Calculator — and any fixed installment debt in our general Amortization Calculator.

How the Amount You Finance Is Built

You almost never borrow the sticker price. The loan principal is built like this:

Vehicle price — the price you agree to pay.
Minus rebate or discount — cash back from the maker or dealer. This usually lowers the taxable price too.
Minus down payment — cash you hand over up front.
Minus trade-in value — credit for your old car.
Plus sales tax — charged on the price after the rebate.
Plus fees — doc fees, title, registration, dealer prep, and warranties.

Tax and fees are often rolled into the loan, so you pay interest on them too.

The Monthly Payment Formula

Lenders use one standard formula for a fixed-rate car loan:

M = P × [ r(1 + r)ⁿ ] ÷ [ (1 + r)ⁿ − 1 ]

M = monthly payment
P = principal (amount financed)
r = monthly rate (APR ÷ 12)
n = number of monthly payments

If the APR is 0%, the math is simple: payment = principal ÷ number of months. This is the same formula used by our Loan Payment Calculator and Loan Calculator for any installment debt.

What APR Means

APR stands for Annual Percentage Rate. It is the yearly cost of borrowing money. A lower APR means less interest. Your APR depends mostly on your credit score, the loan term, and whether the car is new or used. New cars usually get better rates than used cars. Even a 1% drop in APR can save hundreds of dollars — the Car Interest Calculator shows the difference, and if you already have a loan, the Auto Refinance Calculator can tell you whether a new rate is worth it.

Short Term or Long Term?

A longer loan term gives you a smaller monthly payment, but you pay more interest overall. A shorter term costs more each month but saves money in the end. Here is the same $30,000 loan at 6.5% APR:

Term	Monthly Payment	Total Interest
36 months	about $919	about $3,090
60 months	about $587	about $5,215
72 months	about $504	about $6,301

The 72-month loan saves you $415 a month compared to 36 months, but costs over $3,200 more in interest. The Loan Interest Calculator is a fast way to test other term and rate combinations.

Paying Extra Each Month

Extra money you send in goes straight to principal. That shrinks the balance faster, so less interest builds up. Even $25 or $50 a month can cut months off your loan and save real money. Check that your lender applies extra payments to principal and does not charge a prepayment penalty. See the Early Payoff Calculator and Loan Payoff Calculator to plan a faster finish, or the Debt Payoff Calculator if the car loan is one of several debts.

Being Upside Down

Cars lose value fast. A new car can drop 20% in the first year. If you owe more than the car is worth, you are "upside down" or "underwater." That is a problem if the car is totaled or you want to sell it early. A bigger down payment and a shorter term help you avoid it. Many buyers aim for at least 20% down on a new car and a term of 60 months or less. Run your model through the Car Depreciation Calculator or Vehicle Depreciation Calculator to see how fast your value falls, and compare it with your loan balance from the schedule above. If a purchase looks too tight, the Car Lease Calculator is worth a look.

Other Costs to Plan For

The loan payment is not the whole cost of owning a car. Also budget for insurance with the Car Insurance Calculator, gas or charging using the Fuel Cost Calculator and Gas Mileage Calculator, plus oil changes, tires, repairs, and yearly registration. A good rule of thumb is to keep your total car costs under about 15% of your take-home pay — check yours with the Take Home Pay Calculator, confirm the payment fits with the DTI Calculator, and fold everything into your Monthly Budget Calculator. Financing something other than a car? Try the Motorcycle Loan Calculator, RV Loan Calculator, or Boat Loan Calculator.

Formulas used

Rebated (Taxable) Vehicle Price

P_{\text{rebated}} = \text{Price} - \text{Rebate}

Sales Tax (rolled into the loan)

T = P_{\text{rebated}} \times \frac{\text{Tax Rate}}{100}

Loan Principal (amount financed)

P = P_{\text{rebated}} - \text{Down} - \text{Trade-In} + T + \text{Fees}

Monthly Interest Rate and Number of Payments

r = \frac{\text{APR}/100}{12}, \qquad n = \text{Years} \times 12

Monthly Payment (amortized loan)

M = P \cdot \frac{r(1+r)^{n}}{(1+r)^{n} - 1}, \qquad M = \frac{P}{n} \ \text{if } r = 0

Monthly Amortization Step

I_k = B_{k-1} \cdot r, \qquad \text{Princ}_k = (M + E) - I_k, \qquad B_k = B_{k-1} - \text{Princ}_k

Total Paid and Total Interest

\text{Total Paid} = \sum_{k=1}^{N} (M + E), \qquad \text{Total Interest} = \text{Total Paid} - P

Savings from Extra Payments

\text{Interest Saved} = I_{\text{base}} - I_{\text{extra}}, \qquad \text{Months Saved} = n - N_{\text{extra}}

Frequently asked questions

Why is my payment here different from the dealer's number?

Dealers often use different numbers than you typed. Common reasons:

The dealer added fees or products you did not enter.
Your APR is not the same as the one you were quoted.
The term is longer or shorter than you picked.
Some states tax the full price, not the price after the rebate.

Ask for the dealer's exact price, tax, fees, APR, and term, then type those in. The numbers should then match within a dollar or two.

Does the calculator take sales tax off my trade-in?

No. This tool charges tax on the vehicle price after the rebate, before the trade-in is subtracted. Many states give you a tax credit for a trade-in, but rules differ.

If your state credits the trade-in, you can lower the Sales Tax Rate or drop the Vehicle Price by the trade amount to get closer to your real tax bill.

Why does it say there is nothing to finance?

That message shows when your down payment, trade-in, and rebate add up to more than the car price plus tax and fees. In other words, you already covered the whole cost, so there is no loan to build a schedule for.

Lower the down payment or trade-in value to see a loan.

Will my last car payment be the same as the others?

Almost never. The final payment is usually a few cents or a few dollars different because of rounding each month. The calculator handles this by paying off only what is left, so the balance ends at exactly $0.00.

Does paying extra lower my monthly bill?

No. Your required payment stays the same. The extra money cuts the principal, so you finish the loan sooner and pay less interest.

The results show your new payoff date, interest saved, and months saved once you enter an extra amount.

What are the highlighted rows in the amortization schedule?

Those are yearly totals. They add up the payments, principal, interest, and any extra payments you made in that calendar year, and show the balance left at year end. They make it easy to see a full year at a glance.

How do I see what I will still owe in two or three years?

Scroll the amortization schedule to that month and look at the Ending Balance column. That is your payoff amount at that point, not counting a few days of extra interest.

This is useful if you plan to trade or sell the car early.

Can I use this for a used car, truck, or SUV?

Yes. The math is the same for any fixed-rate vehicle loan. Just enter the price, your APR, and the term. Used car rates are usually higher, so use the rate your lender actually offers.

What if I pay the tax and fees in cash instead of financing them?

Set Additional Fees to 0 and set the Sales Tax Rate to 0. Then the loan only covers the car itself. Paying tax and fees up front means you do not pay interest on them, which saves money.

Does the calculator work with a 0% APR deal?

Yes. Enter 0 in the APR box. The payment becomes the loan amount divided by the number of months, and total interest is $0. A note appears to remind you that 0% offers are usually short promotions for buyers with strong credit.

Is my information saved or sent anywhere?

No. All the math runs in your browser. Nothing you type is stored or sent to a server. If you want to keep your numbers, use the Download CSV or Download Excel button.

What does the donut chart show?

It breaks your total vehicle cost into four parts:

Principal financed — the car price you borrowed.
Tax and fees — rolled into the loan.
Total interest — what the loan costs you.
Paid upfront — your down payment plus trade-in.

It is a fast way to see how big the interest slice really is.

Can I set up biweekly or weekly payments?

No. This calculator uses monthly payments only, which is how most car loans work. If you want a biweekly plan, a close estimate is to add one twelfth of your monthly payment as an extra monthly payment.

What is the difference between APR and the interest rate?

The interest rate is just the cost of borrowing. The APR includes the interest rate plus certain lender fees, so it is usually a bit higher. Use the APR when you compare offers, since it shows the truer cost.

What numbers can I enter?

APR: 0% to 30%
Sales tax: 0% to 25%
Term: 1 to 120 months (up to 10 years)
Price, down payment, fees, rebate, extra payment: $0 or more

If a number is outside these limits, a red message tells you what to fix.

Can I model one big lump-sum payment?

Not directly. This tool uses a steady extra amount each month. To copy a lump sum you plan to pay at signing, just add it to your Down Payment. That lowers the loan the same way.

Does this work outside the United States?

The math works for any country with fixed monthly car loans. Only the dollar sign changes; the payment, interest, and schedule are correct for any currency. Tax rules for vehicles vary by country, so check your local rules.

Why is my total cost so much higher than the car price?

Your total includes more than the sticker. Sales tax, dealer fees, and years of interest all pile on top. Longer terms and higher APRs make that gap bigger. The donut chart shows exactly how much each part adds.

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