Productive ToolboxCar Loan Calculator
Work out the monthly payment on an auto loan with down payment, trade-in, sales tax and fees, and compare 36- to 84-month terms.
Car and loan
Your state + local rate; VAT is usually in the price
Monthly payment
$644.70
for 60 months at 6.5% APR
- Amount financed
- $32,950.00
- Total interest
- $5,732.28
- Sales tax
- $2,450.00
- Paid upfront
- $5,000.00
- Total of payments
- $38,682.28
- Total cost of the car
- $43,682.28
Compare loan terms
| Term | Monthly | Total interest |
|---|---|---|
| 36 mo | $1,009.88 | $3,406 |
| 48 mo | $781.41 | $4,558 |
| 60 mo | $644.70 | $5,732 |
| 72 mo | $553.89 | $6,930 |
| 84 mo | $489.29 | $8,150 |
Next step
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What Goes into a Car Payment
The amount you borrow is the car's price minus your down payment and the equity in your trade-in, plus sales tax and fees if you roll them into the loan. The monthly payment then depends on only two things: the interest rate (APR) and the number of months.
Amount financed = Price − Down payment − (Trade-in value − Amount owed) + Tax + Fees
Monthly payment = L × r ÷ (1 − (1 + r)−n)
Total interest = Monthly payment × n − L
L is the amount financed, r the APR ÷ 12 as a decimal and n the number of monthly payments. Example: a $35,000 car with $5,000 down, 7% sales tax and $500 of fees financed at 6.5% for 60 months comes to $32,950 financed and about $644.70 a month.
How to Use the Car Loan Calculator
- 1Enter the car price and down payment: Type the vehicle's price and the cash you will put down, in your currency.
- 2Add your trade-in: Enter what the dealer will give you for your current car and how much you still owe on it; owing more than it is worth adds negative equity to the loan.
- 3Add sales tax and fees: Enter your sales tax rate and the title, registration and dealer fees, and choose whether to pay them upfront or roll them into the loan.
- 4Set the rate and term: Enter the APR from your lender or dealer and choose a term from 24 to 96 months.
- 5Compare and check the schedule: See the monthly payment, the amount financed, total interest and total cost, compare terms side by side, and open the year-by-year amortization.
Ways to Pay Less
- Put more down: every extra dollar is a dollar you do not pay interest on.
- Choose the shortest term whose payment you can afford comfortably.
- Get preapproved by a bank or credit union so you can compare the dealer's financing offer.
- Negotiate the price of the car first, separately from the trade-in and the monthly payment.
- Pay taxes and fees upfront if you can, rather than financing them.
Frequently Asked Questions
How is a car loan payment calculated?
With the standard amortization formula: payment = L × r ÷ (1 − (1 + r)^−n), where L is the amount financed, r the APR divided by 12 and n the number of months. Financing $32,950 at 6.5% for 60 months gives about $644.70 a month and roughly $5,730 of interest.
How does a trade-in lower my payment?
Its value, minus anything you still owe on it, is subtracted from the price like extra down payment. In most US states it also reduces sales tax, because tax is charged only on the price minus the trade-in; a few states, including California, tax the full price.
What is negative equity?
Owing more on your current car than it is worth. If your trade-in is worth $12,000 and you owe $15,000, the $3,000 difference is added to the new loan, so you pay interest on a car you no longer have.
Is a longer loan term a good idea?
A 72- or 84-month loan lowers the monthly payment but costs more interest and often comes with a higher rate. Because cars lose value quickly, a long loan also makes it more likely you will owe more than the car is worth for years. The comparison table shows the extra interest for each term.
Should I roll taxes and fees into the loan?
Paying them upfront means borrowing less and paying less interest. Rolling them in keeps cash in hand but you pay interest on them for the whole term.
What is a good APR for a car loan?
It depends on your credit score, whether the car is new or used, the term and current interest rates; used-car loans and longer terms usually cost more. Get quotes from your bank or credit union before visiting the dealer and compare them with dealer financing.
Does this work outside the US?
Yes. Choose your currency and set the tax to 0 if VAT is already included in the car's price, as in the UK and Europe. For a PCP or lease with a final balloon payment, the monthly figure here will be higher than the dealer's quote.
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