Auto loan calculator
Your monthly car payment, with trade-in and sales tax factored in.
Monthly payment
Sales tax is applied to the price minus your trade-in, which is how most US states calculate it.
How a car loan payment is calculated
An auto loan is an amortized loan, so the monthly payment is fixed for the whole term. The amount you finance is the vehicle price, plus sales tax, minus your down payment and any trade-in value. The calculator then spreads that amount over your chosen number of months at the interest rate you enter.
Worked example
On a $35,000 car with $5,000 down, no trade-in, 7% sales tax, a 6% interest rate, and a 60-month term, you finance about $32,450 after tax and pay roughly $627 a month. A larger down payment, a trade-in, or a shorter term all lower the total interest you pay.
Frequently asked questions
How is a car loan payment calculated?
The amount financed (price plus tax, minus down payment and trade-in) is run through a standard amortization formula using your interest rate and the number of months. The result is a fixed monthly payment.
Is sales tax included in a car loan?
Usually yes. In most US states the tax is calculated on the price after any trade-in credit and then financed along with the car, which this calculator reflects.
How does a trade-in reduce my loan?
Your trade-in value is subtracted from the price, lowering both the amount you finance and, in most states, the amount of sales tax you owe.
Should I make a down payment on a car?
A down payment reduces the amount you borrow, lowers your monthly payment and total interest, and helps you avoid owing more than the car is worth.
What loan term should I choose?
Shorter terms (36 to 48 months) cost more per month but far less interest overall. Longer terms (72 to 84 months) lower the payment but you pay much more interest and risk being underwater on the loan.