Auto Loan Calculator

Estimate your monthly car payment and the total cost of the vehicle, including down payment, trade-in and sales tax.

How to use the Auto Loan Calculator

  1. Enter the vehicle price, your down payment and any trade-in value.
  2. Add the sales tax rate, the interest rate and the term in months.
  3. Read the monthly payment, total interest and total cost.

How the car payment is worked out

The amount financed is the vehicle price plus sales tax, minus the down payment and trade-in. This calculator applies sales tax to the price after the trade-in, which is how many US states work; rules vary by location.

Loan = price + tax − down payment − trade-in

The monthly payment then follows the standard loan formula using the monthly interest rate and the number of months.

Tips for a cheaper car loan

  • A larger down payment reduces both the payment and the interest.
  • Terms beyond 60 months lower the payment but cost more overall, and the car may lose value faster than the loan falls.
  • Compare the dealer’s rate with a bank or credit union offer.

Results are estimates for planning. They are not financial advice and do not include every fee a lender or provider may charge.

Frequently asked questions

How is a car payment calculated?

The amount financed (price plus tax minus down payment and trade-in) is spread over the term using the amortization formula with the monthly interest rate.

What is a good loan term for a car?

Many advisers suggest 60 months or less for a new car and 36 to 48 months for a used car, to limit interest and avoid owing more than the car is worth.

How much should I put down on a car?

A common guideline is at least 20% for a new car and 10% for a used car.

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