Car loan calculator
Enter the vehicle price, your down payment and trade-in, the sales tax rate, the APR and the term to see the monthly payment, the amount financed, the total interest and what the car costs you in all.
Result
- Monthly payment
- $650.23
- Amount financed
- $32,450.00
- Total interest
- $6,563.89
- Total cost (down payment, trade-in and all payments)
- $44,013.89
- Sales tax
- $2,450.00
How to use this tool
- Enter the negotiated vehicle price, then your cash down payment and the trade-in value the dealer offered.
- Enter your state and local sales tax rate. It is charged on the price minus the trade-in; enter 0 to skip it.
- Enter the APR from the lender or dealer and pick the term in months. 60 months is the most common; shorter terms cost less interest.
- Read the monthly payment, amount financed, total interest and total cost. Copy the headline figure or share the page link.
Good to know
- Sales tax is charged on the price minus the trade-in; the amount financed is price + tax − down payment − trade-in.
- The payment uses a fixed APR divided by 12 with equal monthly instalments; fees, warranties and rebates are not included unless you add them to the price or the down payment.
- Total cost adds the down payment and trade-in value to every monthly payment, so it is what the car costs you in cash and traded value, not just the loan.
- Each payment is shown to the cent, but the totals are calculated from the exact unrounded payment.
Frequently asked questions
How is the monthly car payment calculated?
The amount financed is the price plus sales tax minus your down payment and trade-in. The payment then follows the standard amortisation formula A × r ÷ (1 − (1 + r)^−n), where r is the APR divided by 12 and n is the number of months. For a $35,000 car with 7% tax ($2,450) and $5,000 down, $32,450 is financed; at 7.5% over 60 months r is 0.00625, giving $650.23 a month and $6,563.89 of interest.
How are sales tax and a trade-in handled?
Sales tax is applied to the price minus the trade-in value, because most states only tax the difference when you trade a car in. A handful of states, such as California and Virginia, tax the full price; if that applies to you, enter 0 and add the tax to the price yourself. The trade-in and the down payment both reduce the amount financed, and both count in the total cost because they are money or value you hand over.
How much does a bigger down payment save?
Every dollar you put down is a dollar that is not charged interest for the whole term. On the $35,000 example at 7.5% over 60 months, financing the full $37,450 costs $750.42 a month and $7,575.27 in interest, while $5,000 down lowers that to $650.23 and $6,563.89. A larger down payment also keeps you from owing more than the car is worth early in the loan.
Is a longer loan term a good idea?
A longer term lowers the monthly payment but raises the total interest, and you keep paying while the car loses value. Financing $32,450 at 7.5% costs $784.61 a month and $5,211 of interest over 48 months, $650.23 and $6,564 over 60 months, and $561.06 and $7,947 over 72 months. Pick the shortest term whose payment fits your budget, and note that lenders often charge higher rates on 72- and 84-month loans.
What is not included in the result?
Dealer documentation fees, registration and title fees, extended warranties, GAP insurance and manufacturer rebates are not part of the calculation unless you fold them into the price or the down payment. The rate is applied as a fixed APR with equal monthly instalments, so a quote with fees rolled into the loan or a precomputed-interest contract can differ by a few dollars a month.
Results are estimates for general information. Double-check anything important with an official source.