Car Loan Calculator
Use this car loan calculator to estimate your monthly payment before you visit the dealer. Enter the vehicle price, your down payment and trade-in, your state's sales tax rate and the interest rate you were quoted. You'll see the amount financed, the total interest and what the car really costs once every payment is made.
Updated
Results
- Amount financedPrice + tax + fees − down payment − trade-in
- Total interest
- Sales tax
- Balloon paymentDue at the end of the loan
- Total cost of the carPayments + balloon + down payment + trade-in
- Monthly interest rate
Results are estimates. See the methodology below.
How to use the calculator
- Vehicle price: the negotiated price of the car, before tax.
- Down payment and trade-in value: cash you put down and what the dealer gives you for your current car. If you still owe on the trade-in, enter its value minus your payoff amount.
- Sales tax rate: your combined state and local rate. The calculator taxes the price minus the trade-in.
- Interest rate: annual by default, or switch to monthly.
- Loan term (months): 36, 48, 60, 72 or 84 are common.
- Advanced options: fees you roll into the loan (documentation, title, registration) and an optional balloon payment as a percentage of the price.
How the calculator works
First it builds the amount you borrow:
sales tax = (price − trade-in) × tax rate
amount financed = price + sales tax + fees − down payment − trade-in
The annual rate is divided by 12 to get the monthly rate i, as U.S. auto lenders do. The payment is a fixed installment over n months; with a balloon B, the final lump sum is discounted first:
payment = (L − B ÷ (1 + i)^n) × i ÷ (1 − (1 + i)^−n)
- Total interest = all payments + balloon − amount financed.
- Total cost = all payments + balloon + down payment + trade-in: everything you give up for the car.
Not every state taxes the price minus the trade-in; some tax the full price. If yours does, enter the trade-in as cash down to see the effect. Insurance, maintenance and fees you pay up front are not included.
Worked examples
1. $35,000 car, $5,000 down, 7% for 60 months
With 6% sales tax, the tax is $2,100 and you finance $32,100. The payment is $635.62 a month, total interest is $6,037.11 and the car costs $43,137.11 in all. Rolling a $500 documentation fee into the loan raises the payment to $645.52.
2. Trade-in versus the same amount in cash
Same car, but you trade in a vehicle worth $8,000 and put no cash down. Tax falls to $1,620, you finance $28,620 and pay $566.71. With $8,000 in cash instead, tax stays at $2,100 and the payment is $576.21. In a state that credits the trade-in, it saves you $480 of tax.
3. How the term changes the cost
Financing $32,100 at 7%:
| Term | Monthly payment | Total interest |
|---|---|---|
| 36 months | $991.15 | $3,581.57 |
| 48 months | $768.67 | $4,796.37 |
| 60 months | $635.62 | $6,037.11 |
| 72 months | $547.27 | $7,303.66 |
| 84 months | $484.48 | $8,595.90 |
Stretching from 60 to 84 months lowers the payment by $151.14 but adds $2,558.79 of interest.
How to read your results
Look at total interest and total cost, not just the payment. A lower payment usually means a longer term or a balloon, and both mean more interest. A 30% balloon on the first example cuts the payment to $488.96, but leaves $10,500 due at the end and raises interest to $7,737.35. Cars lose value, so a long loan or a large balloon can leave you owing more than the car is worth.
Frequently asked questions
How is sales tax calculated on a car with a trade-in?
Many states charge sales tax only on the price minus your trade-in, which is what this calculator does. Others tax the full price, and local taxes and fees vary. Check your state's revenue department or DMV for the rule and the combined rate where you'll register the car.
What's the difference between the interest rate and the APR?
The interest rate is what you pay to borrow the principal. The APR, as the CFPB explains, reflects the cost per year in interest plus fees charged by the lender, so it's the better number for comparing offers. If you only know the APR, enter it as the rate with fees at $0 for a close estimate of the payment.
Should I finance through the dealer or a bank?
Compare both. According to the CFPB, rates arranged through a dealer are generally higher because they include the lender's buy rate plus extra interest that compensates the dealer. Getting preapproved by a bank or credit union gives you a quote to negotiate with.
What if I owe more on my trade-in than it's worth?
That's negative equity. A dealer may roll the leftover balance into your new loan, which the CFPB warns makes the new loan more expensive. To model it, set the trade-in to $0 and add the shortfall to the fees field.
What is a balloon payment on a car loan?
It's a large final payment that lowers your monthly installments. You must pay it, refinance it or sell the car when the loan ends. Because more principal stays outstanding for longer, you pay more interest overall.
Does the payment include insurance and registration?
Only the fees you enter in the fees field, which are added to the loan. Insurance, registration renewals, maintenance and fuel are ongoing costs you'll pay separately.
Sources
This calculator gives estimates for educational purposes only and is not financial or tax advice. Your actual rate, taxes, fees and payment depend on your lender, your state and your loan contract.