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Auto Loan Calculator
Your monthly car payment with sales tax, fees and trade-in
This auto loan calculator works out the amount you finance after your down payment, trade-in, sales tax and fees, then gives you the monthly car payment and the total interest you will pay.
The key idea
A longer loan lowers the payment, not the cost
Financing $32,600 at 7%, the payment is $645.52 over 60 months and $555.80 over 72. The longer loan saves $89.72 a month but costs $1,286 more in interest, and you stay longer with a car worth less than you owe.
How it is calculated
First we find the amount you finance, then the payment with the standard amortization formula:
Financed = price + sales tax + fees − down payment − trade-in + amount still owed on the trade-in
Payment = L × i / (1 − (1 + i)^−n)
i is the APR divided by 12 and n the number of months. Sales tax rules depend on the state: in many states the trade-in value is subtracted before tax, and some states charge tax differently on vehicles. If you still owe money on your trade-in, that negative equity is added to the new loan.
Your lender's Truth in Lending disclosure shows the exact APR, amount financed and total of payments; compare offers on those figures, not on the monthly payment alone.
Worked example
A $35,000 car with $5,000 down, a 6% sales tax ($2,100) and $500 of fees: $32,600 financed. At 7% APR for 60 months the payment is $645.52 a month and the interest $6,131.14. Over 72 months: $555.80 a month and $7,417.43 of interest.
Typical cases
Car payment per $10,000 financed
The monthly payment on each $10,000 you finance, by APR and loan term, with no fees. For $30,000, multiply by three.
| APR | 36 months | 48 months | 60 months | 72 months | 84 months |
|---|---|---|---|---|---|
| 4% | $295.24 | $225.79 | $184.17 | $156.45 | $136.69 |
| 6% | $304.22 | $234.85 | $193.33 | $165.73 | $146.09 |
| 8% | $313.36 | $244.13 | $202.76 | $175.33 | $155.86 |
| 10% | $322.67 | $253.63 | $212.47 | $185.26 | $166.01 |
| 12% | $332.14 | $263.34 | $222.44 | $195.50 | $176.53 |
| 15% | $346.65 | $278.31 | $237.90 | $211.45 | $192.97 |
Save or share this table as an image Common questions
Frequently asked questions
How is a car payment calculated?
With the loan amount, the monthly rate and the number of months: L × i / (1 − (1 + i)^−n). Financing $32,600 at 7% APR for 60 months gives $645.52 a month.
Is it better to take a 60- or a 72-month car loan?
The 60-month loan costs less: on $32,600 at 7%, it saves about $1,286 of interest compared with 72 months. The 72-month loan only lowers the monthly payment, by $89.72 in this case.
Do I pay sales tax on a car?
In most states, yes, usually when you register the vehicle or through the dealer. Whether the trade-in reduces the taxable price, and the rate itself, depend on your state and county.
What happens if I owe more on my trade-in than it is worth?
The difference, called negative equity, is usually added to your new loan. You end up paying interest on the old car too; type the amount owed to see the effect.
What is APR on a car loan?
It is the yearly cost of the loan as a percentage, including the interest rate and certain finance charges. Lenders must show it, and it is the best number for comparing loan offers.
How much should I put down on a car?
Enough to keep the loan below what the car is worth as it loses value, and a payment you can afford. A larger down payment lowers the amount financed, the payment and the total interest.
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