How this calculator works
Dealers often quote only the monthly payment. This auto loan calculator shows the whole picture: sales tax, fees, how much you borrow after your down payment and trade-in, and the total interest over the loan.
Shorter terms such as 48 or 60 months cost far less in interest than 72 or 84 months, and they reduce the risk of owing more than the car is worth.
Formula
Amount financed = price + sales tax + fees − down payment − trade-in. Monthly payment = L × r ÷ (1 − (1 + r)^−n), with r = APR ÷ 12.
Frequently asked questions
How is a car payment calculated?
The payment spreads the amount you finance plus interest evenly over the loan term. Higher rates, longer terms and bigger loan amounts all raise the total interest.
What is a good interest rate for a car loan?
Rates depend on credit score, loan term and whether the car is new or used. Credit unions and banks often beat dealer financing, so get a pre-approval to compare.
How much should I put down on a car?
A common target is 20% for a new car and 10% for a used car. A larger down payment lowers your payment and protects you from negative equity.
Is sales tax charged on the trade-in?
It depends on your state. Many states only tax the difference between the price and your trade-in. Check local rules and adjust the sales tax rate if needed.