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Car Loan Calculator

Work out monthly car payments including trade-in and down payment.

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Monthly payment

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Amount financed
Sales tax
Total interest
Total cost of car

Results are estimates for general information only and are not financial advice. Check important figures with a qualified professional or your lender. Read our disclaimer.

When to use it

The car loan calculator works out the monthly payment and the true total cost of financing a car, including sales tax, fees, your down payment and any trade-in. Use it before visiting a dealer to know what you can afford, to compare dealer finance with a bank loan, to see how a bigger down payment helps, or to choose between loan terms.

How to calculate a car payment

  1. Choose your Currency.
  2. Enter the Car price, Down payment and Trade-in value.
  3. Enter the Interest rate (APR) and choose the Loan term (36 to 84 months).
  4. Enter the Sales tax rate and Fees (title, registration).
  5. Tick Tax only the price minus the trade-in if your state works that way (most US states do).
  6. Read the Monthly payment, Amount financed, Sales tax, Total interest and Total cost of car, plus a comparison with a shorter loan.

A worked example

You’re buying a $32,000 car with $4,000 down, 7% sales tax, $500 fees and a 6.9% APR over 60 months. Sales tax adds $2,240, so the amount financed is $30,740. The monthly payment is $607.24, total interest $5,694, and the total cost of the car is $40,434. The calculator also shows that a 48-month loan would be $734.68 a month but save $1,170 in interest.

Ways to lower the total cost

  • Bigger down payment: less to borrow and less interest.
  • Shorter term: higher payments but much less interest.
  • Better rate: shop around; a 1% lower APR saves hundreds.
  • Negotiate the price, not the payment: dealers can hit any monthly figure by stretching the term.
  • Trade-in value: compare dealer offers with private sale prices.

Tips

  • Budget for running costs too: insurance, fuel, servicing and parking.
  • Get pre-approved before visiting the dealer, so you have a rate to beat.
  • Check for add-ons like extended warranties rolled into the loan.

Common mistakes

  • Focusing only on the monthly payment, which hides the cost of long terms.
  • Forgetting tax and fees, which can add thousands.
  • Rolling negative equity from an old car loan into the new one.
  • Choosing 84 months for an expensive car you couldn’t otherwise afford.

Compare other loans with the Loan Calculator, save for a down payment with the Savings Goal Calculator, or check fuel costs with the Fuel Economy Converter.

Frequently asked questions

Should sales tax be calculated before or after the trade-in?

In most US states, tax is charged on the price minus your trade-in, which saves money. A few states tax the full price. Tick or untick "Tax only the price minus the trade-in" to match your state's rule.

What does "amount financed" include?

The car price plus sales tax and fees, minus your down payment and trade-in. It's the amount you actually borrow.

Is a 72 or 84-month loan a good idea?

It lowers the monthly payment but costs much more interest, and cars lose value fast, so you can owe more than the car is worth for years. Shorter terms are usually safer if you can afford them.

What APR should I expect?

It depends on your credit score, the lender, whether the car is new or used, and current rates. Get a pre-approval from your bank or credit union to compare with the dealer's offer.

Is this financial advice?

No. Use it to compare options, then check the exact figures with your lender.

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