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Auto Loan Calculator
Estimate your monthly car payment, including sales tax, your down payment and any trade-in, and see what the car really costs over the loan.
How it works
The calculator adds sales tax to the vehicle price (on the price minus your trade-in, as most US states do), then subtracts your down payment and trade-in to get the amount financed. The monthly payment uses the standard loan formula P × r ÷ (1 − (1 + r)^−n), where r is the APR ÷ 12 and n is the number of months.
Worked example
A $32,000 car with $4,000 down, 6% sales tax and a 6.9% APR over 60 months: tax is $1,920, so you finance $29,920. The payment is about $591 a month, you pay roughly $5,542 in interest, and the car costs about $39,462 in total.
How the loan term changes the cost
Longer terms lower the monthly payment but raise the total interest, and you may owe more than the car is worth for longer because cars lose value quickly. On the example above, 72 months cuts the payment to about $508 but adds over $1,000 in interest compared with 60 months.
Tips for a cheaper car loan
- Get pre-approved by a bank or credit union before visiting the dealer so you can compare offers.
- Aim for a down payment of at least 10% to 20% of the price.
- Negotiate the car's price first, then the financing.
- The 20/4/10 rule is a popular guide: 20% down, no more than 4 years, and total car costs under 10% of your income.
- Remember fees, registration and insurance, which are not included here.
Frequently asked questions
What is a good APR for a car loan?
It depends on your credit score and whether the car is new or used. Borrowers with excellent credit usually get the lowest rates, so compare several lenders.
Is sales tax included in the loan?
In this calculator, yes. Sales tax is added to the amount financed, which is common, but you can pay it upfront by adding it to your down payment.
Does a trade-in reduce sales tax?
In most US states the trade-in value is deducted before tax is charged, and this calculator works that way. A few states do not give this credit.
Should I choose a 72- or 84-month loan?
Only if you need the lower payment. You will pay more interest and are more likely to owe more than the car is worth.
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