How is the monthly car payment calculated?

The calculator first finds the amount financed: vehicle price plus sales tax and fees, minus your down payment and trade-in value. It then applies the standard amortization formula with your APR and term to find a fixed monthly payment that pays off that amount with interest.

Does sales tax apply to the full price or the price after trade-in?

Most U.S. states only tax the price minus the trade-in value, which is what this calculator assumes. A few states tax the full price regardless of trade-in — check your state's rule if you want an exact figure.

Why is a longer loan term not always cheaper?

A longer term lowers the monthly payment, but you pay interest for more months, so the total interest paid over the life of the loan goes up. Compare the total interest figure across terms, not just the monthly payment.

Is my financial information sent anywhere?

No. All calculations run locally in your browser with JavaScript — nothing is transmitted or stored.

CAR LOAN CALCULATOR

Estimate your monthly auto loan payment, tax, and total interest. Nothing leaves your browser.

Vehicle price

Down payment

Trade-in value

Sales tax %

Fees & add-ons

APR %

Loan term

Monthly payment601.46

Amount financed30,740.00

Total interest5,347.80

Sales tax owed: 2,240.00Total of all payments: 36,087.80

How to use the car loan calculator

1
Enter the vehicle price, down payment, and trade-in value.
2
Enter your local sales tax rate and any dealer fees or add-ons.
3
Enter the loan's APR and pick a loan term.
4
Read the estimated monthly payment, amount financed, and total interest over the loan.

Questions

How is the monthly car payment calculated?: The calculator first finds the amount financed: vehicle price plus sales tax and fees, minus your down payment and trade-in value. It then applies the standard amortization formula with your APR and term to find a fixed monthly payment that pays off that amount with interest.
Does sales tax apply to the full price or the price after trade-in?: Most U.S. states only tax the price minus the trade-in value, which is what this calculator assumes. A few states tax the full price regardless of trade-in — check your state's rule if you want an exact figure.
Why is a longer loan term not always cheaper?: A longer term lowers the monthly payment, but you pay interest for more months, so the total interest paid over the life of the loan goes up. Compare the total interest figure across terms, not just the monthly payment.
Is my financial information sent anywhere?: No. All calculations run locally in your browser with JavaScript — nothing is transmitted or stored.