CalcArcade.

Car Loan Calculator

Work out the monthly payment on a new or used car, including sales tax, your down payment and any trade-in value.

Your numbers

Uses the state sales tax rate plus the average local rate.

Optional. Shows how much sooner the loan ends and the interest saved.

Result

Estimate for information only, not professional advice. Last reviewed .

How we calculate it

The amount financed is price × (1 + sales tax) − down payment − trade-in. The monthly payment uses the standard installment formula M = L × r ÷ (1 − (1 + r)^−n) with r equal to APR ÷ 12.

Total interest is the monthly payment times the number of months, minus the amount financed.

How to read your result

  • Monthly payment is what you pay each month for the term you chose.
  • Amount financed includes sales tax, minus your down payment and trade-in.
  • Total interest shows the cost of borrowing. Total cost adds your down payment and trade-in so you see the full price.
  • The what-if table shows how a higher rate changes the payment and the interest.

Common mistakes

  • Focusing on the monthly payment and picking a very long term. You pay far more interest and may owe more than the car is worth.
  • Forgetting sales tax, registration and dealer fees, which raise the amount financed.
  • Not checking the loan rate before visiting the dealer. A bank or credit union offer gives you something to compare.
  • Rolling negative equity from an old loan into the new one.

Assumptions and limits

  • Sales tax rules differ by state. Some states tax the price after trade-in, which would lower your result. Set the tax rate to match your situation.
  • Registration, title, documentation fees and add-ons are not included unless you add them to the price.
  • Longer terms lower the payment but raise total interest.

Frequently asked questions

Should I choose a longer loan term to lower the payment?

A longer term lowers the monthly payment but increases total interest and the time you could owe more than the car is worth. Compare 48, 60 and 72 months in the calculator before deciding.

How much should I put down?

A larger down payment reduces the amount financed and interest. Many buyers aim for around 20% on a new car to offset early depreciation, but the right amount depends on your budget.

Does a trade-in reduce sales tax?

In some states it does, in others it does not. This calculator applies tax to the full price, so enter a lower price or tax rate if your state taxes the net amount.

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Worked example (a fixed example using the starting numbers, it does not change as you type)

Inputs: Vehicle price ($) = 32000; Down payment ($) = 4000; Trade-in value ($) = 0; Interest rate (APR %) = 7; Loan term (months) = 60; Sales tax (%) = 6; Extra payment toward principal ($ per month) = 0.

  • Monthly payment $592.45
  • Amount financed $29,920.00
  • Total interest $5,627.11
  • Total of payments $35,547.11
  • Total cost with down payment and trade-in $39,547.11
  • Final payment October 2031

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Last reviewed: . Formulas and assumptions are described on our methodology page. For information only; not professional advice.