Auto Loan Calculator
Sticker price is only the start — down payment, trade-in, and sales tax all change what you actually finance. Results update as you type, and the link always carries your numbers.
From sticker price to monthly payment
A car payment is calculated on the amount financed, not the sticker price. This tool builds that number the way a dealer would: it subtracts your trade-in from the price, applies sales tax to that reduced amount (the rule in most states — a few tax the full price, so check yours), and then subtracts your cash down payment. The result is amortized over your term with the standard formula M = P·r / (1 − (1 + r)−n), where r is the monthly rate. Alongside the payment you see total interest and the all-in cost of the car — down payment plus every payment you will make.
Worked example
A $35,000 vehicle with $5,000 down, no trade-in, 7% sales tax, financed at 6.9% for 60 months: tax adds $2,450, so the amount financed is $32,450. The monthly payment works out to $641.02, with $6,011.14 in total interest — an all-in cost of $43,461.14 for a $35,000 car. Switch the term to 72 months and watch the payment fall but the interest climb; that trade-off is the whole game.
Frequently asked questions
Does a trade-in reduce the sales tax on a car?
In most US states, yes — tax is charged on the price minus your trade-in value, which is how this calculator works. A handful of states tax the full price regardless of trade-in, and some cap the credit, so check your state's rules. Either way, the trade-in always reduces the amount you finance.
Should I pick a 60-month or 72-month car loan?
The longer term buys a lower payment at a real cost. On $32,450 financed at 6.9%, a 60-month loan runs $641.02 a month with $6,011.14 total interest; stretching to 72 months drops the payment to $551.68 but raises lifetime interest to $7,271.20 — about $1,260 more for the same car. If the 60-month payment fits your budget, it is almost always the better deal.
What does APR include on an auto loan?
APR (annual percentage rate) is the yearly cost of borrowing expressed as a rate, and by law it must fold in most mandatory finance charges and lender fees — not just the base interest rate. That makes APR the right number to compare across lenders, and it is the rate this calculator expects.
What is negative equity, and why do long loan terms cause it?
Negative equity means owing more on the loan than the car is worth. Cars depreciate fastest in the first years, while long terms (72–84 months) pay principal down slowly — so for a large stretch of the loan you would be "underwater" if you had to sell or the car were totaled. Shorter terms and larger down payments shrink that window.