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Auto Loan Calculator with Taxes and Fees
See your real monthly payment, including sales tax and fees, and what a bigger down payment saves you.
Updated October 22, 2026
Quick answer: Your loan covers the car price plus sales tax and fees, minus your down payment and trade-in. For a $35,000 car with 6% sales tax, $500 in fees, and $5,000 down at 6.5% APR for 60 months, you finance $32,600 and pay about $637.86 a month ($5,671.39 in interest). For comparison, in Q2 2026 the U.S. average car payment was $765/mo new and $542/mo used (full statistics). Use the payment-first calculator below for your number — insurance, fuel, and registration are added on top of the loan payment.
What Car Price Can You Afford?
Estimates you can edit. The price updates as you type. Enter the monthly car payment you can afford after insurance, fuel, and other costs. We turn that payment into a loan amount at your APR and term, then add your down payment to get the car price. Insurance, fuel, maintenance, and registration ÷ 12 are then added to the payment to show the total monthly cost of owning the car. Registration is yearly because that is how most U.S. states bill it.
What you can afford
How the number is built: your monthly car payment at your APR and term sets the amount financed, and car price = amount financed ÷ (1 − down payment %). Insurance, fuel, maintenance, and registration/12 are added to the payment to show the total monthly cost of owning the car. Default: $430 payment → about a $24,419 car and $800/month total (10% down, 6.5% APR, 60 months; registration $120/year).
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Assumptions: $430.00/mo car payment; insurance $150.00/mo; fuel $160.00/mo; maintenance $50.00/mo; registration $120.00/year ($10.00/mo); 10% down; 6.5% APR; 60 months. Total monthly cost $800.00.
How the budget rule works: How much car can I afford?
Payment on a specific price
Your Results
How This Works
This calculator uses the standard amortization formula for installment loans. We add sales tax and fees to the car price, then subtract your down payment and trade-in to get the amount financed. Then we calculate your monthly payment from the interest rate and loan term.
The formula: M = P × r ÷ (1 − (1 + r)−n), where P is the amount financed, r is the APR ÷ 12 (as a decimal), and n is the number of monthly payments.
Worked example (the default numbers above):
- Amount financed: $35,000 car − $5,000 down − $0 trade-in = $30,000.
- Monthly rate: r = 0.065 ÷ 12 = 0.0054167. Term: n = 60 months.
- Monthly payment: $30,000 × 0.0054167 ÷ (1 − 1.0054167−60) = $586.98 a month.
- Total of loan payments: 60 payments of $586.98 = $35,219.07 (the calculator uses the unrounded payment).
- Total interest: $35,219.07 − $30,000 = $5,219.07.
- Total cost of the car: $5,000 down + $0 trade-in + $35,219.07 in payments = $40,219.07.
For comparison, putting only 10% down ($3,500) finances $31,500, which is $616.33 a month and $5,480.02 in interest, so the extra $1,500 down saves you $260.95 in interest. With sales tax and fees entered, the amount financed is price + sales tax + fees − down payment − trade-in; this calculator assumes you roll tax and fees into the loan. The worked example above uses 0% tax and $0 fees.
Pro tip: A 20% down payment helps you avoid being "underwater" on your loan (owing more than the car is worth).
Auto Loan Taxes and Fees: FAQ
Are sales tax and fees included in a car loan?
They can be. Many buyers roll sales tax, title, registration and dealer fees into the loan, which is what this calculator assumes. Paying them up front instead lowers the amount you finance and the interest you pay.
Is car sales tax charged before or after a trade-in?
In most states, sales tax is charged on the price minus your trade-in value, and that's how this calculator works. A few states tax the full price, so check with your state's revenue or motor vehicle department.
What fees should I enter?
Enter the title fee, the registration fee, and the dealer's documentation (doc) fee. Doc fees vary a lot by state and dealer, so ask for an itemized out-the-door price before you sign.
How much does a bigger down payment save?
With the calculator's default numbers ($35,000 car, 6.5% APR, 60 months), putting $5,000 down instead of $3,500 saves $260.95 in interest. Enter your own numbers above to see what you would save.
The 20/4/10 rule, new vs. used real costs, and depreciation ▸
The average new car payment in the U.S. was $765/month in Q2 2026, and the average used car payment was $542 (Experian, State of the Automotive Finance Market, Q2 2026). Before you step onto a dealer lot, you need to know your real budget — not the one the salesperson wants you to have.
This guide covers the real cost gap between new and used cars, how to get a better rate, and where the free auto loan calculator fits once you know your budget.
The 20/4/10 Rule for Car Buying
This simple rule keeps you from overspending:
- 20% down — Prevents negative equity and reduces monthly payment
- 4-year max loan — Longer loans = more interest + risk of being upside-down
- 10% of gross income — Total monthly car costs (payment + insurance + gas) shouldn't exceed this
On a $60,000 salary, that's $500/month max for everything car-related. If insurance is $150 and gas is $100, your loan payment should be under $250. To turn your own budget into a car price, use the car affordability calculator.
New vs. Used: The Real Cost Difference
A $30,000 new car vs. a $15,000 used car, both at 6% APR for 48 months:
| New Car | Used Car | |
|---|---|---|
| Monthly Payment | $705 | $352 |
| Total Interest | $3,818 | $1,909 |
| Value in 4 Years | ~$15,000 | ~$8,000 |
| Depreciation + Interest | $18,818 | $8,909 |
The used car costs about $10,000 less in depreciation plus interest. That's a year of retirement contributions.
How to Get the Best Auto Loan Rate
- Check your credit first — Know your score before dealers run it. Use a free service.
- Get pre-approved — Credit unions and online lenders often beat dealer rates by 1–3%.
- Keep the loan under 48 months — 72-84 month loans have higher rates and trap you in negative equity.
- Put 20% down minimum — Protects against depreciation and gets you better rates.
- Skip the extras — Extended warranties, gap insurance, and paint protection are dealer profit centers.
The Hidden Cost: Depreciation
New cars lose 20% in year one, then 15% per year after. A $35,000 car is worth:
- After 1 year: $28,000 (-20%)
- After 3 years: $20,200 (-42%)
- After 5 years: about $14,600 (-58%)
This is why 3–5 year old used cars are the sweet spot — someone else ate the depreciation.
💡 Compare Auto Loan Rates
Getting a rate quote before you shop lets you compare offers on equal terms. Any credit check and its impact are set by each lender — read their terms before you apply.
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The Bottom Line
A car is a tool to get you places, not a status symbol. Use our auto loan calculator to find a payment that fits the 20/4/10 rule, then shop used cars in the 3–5 year range. Your future self will thank you.
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