Car Loan Calculator

Estimate your monthly car loan payment by entering the vehicle price, down payment, trade-in value, sales tax rate, interest rate (APR) and loan term. See exactly how much you'll pay each month, the total interest over the life of the loan, and how sales tax is financed into the loan amount.

Monthly payment562.58

Loan amount29,100.00

Total interest4,655.07

Total paid33,755.07

Sales tax2,100.00

How this calculation works

The calculator first adds sales tax to the vehicle price, then subtracts your down payment and trade-in value to find the amount you actually finance: loan amount = price + sales tax − down payment − trade-in.

The monthly payment uses the standard amortization formula: payment = loan amount × r ÷ (1 − (1 + r)⁻ⁿ), where r is the monthly interest rate (APR ÷ 12 ÷ 100) and n is the number of monthly payments. At 0% APR the payment is simply the loan amount divided by the number of months.

Total paid is the monthly payment multiplied by the number of months, and total interest is total paid minus the loan amount — the extra cost of borrowing rather than paying cash.

Worked example

For a 30,000 vehicle with a 3,000 down payment, no trade-in, 7% sales tax and a 6% APR over 60 months: sales tax adds 2,100, so the loan amount is 30,000 + 2,100 − 3,000 = 29,100. At 6% APR over 60 months that comes to about 562.58 a month, for a total paid of roughly 33,755 — about 4,655 of that is interest.

How the loan amount is built

Start with the vehicle's negotiated price.
Add sales tax, calculated on the price at your local rate.
Subtract your down payment — cash paid up front.
Subtract your trade-in value — credit for a car you're giving up.
What's left is the loan amount that actually accrues interest.

Down payment and trade-in have the same effect

Whether the money comes from your savings (down payment) or from a car you're trading in, both reduce the loan amount dollar for dollar before interest is calculated. Putting 3,000 down has exactly the same effect on your payment and total interest as trading in a car appraised at 3,000 — the loan only cares about the total amount financed, not where it came from.

Rolling sales tax into the loan costs more than paying it upfront

Financing the tax instead of paying it in cash means you're borrowing that money too, so interest accrues on it for the whole loan term just like the rest of the loan amount. On a typical 5-year loan, a few thousand in financed tax can add a meaningful amount to your total interest — paying tax in cash at signing, if you can, avoids that extra cost.

Term length trade-off: lower payment, more interest

Financing the same 29,100 loan amount at 6% APR over different terms shows the trade-off clearly — shorter terms cost more per month but far less overall:

Term	Monthly payment	Total interest
36 months	≈ 885	≈ 2,770
48 months	≈ 683	≈ 3,704
60 months	≈ 563	≈ 4,655
72 months	≈ 482	≈ 5,624

Frequently asked questions

Does sales tax really get added to my loan?

Many buyers finance the tax rather than pay it in cash at signing, which is what this calculator assumes by default. Rules vary by location — some places tax only the price after trade-in credit — so check your local dealer paperwork for the exact treatment.

How much does a down payment actually save me?

Every unit of down payment comes straight off the loan amount, so it reduces both the monthly payment and the interest charged over the whole term. A bigger down payment is one of the most reliable ways to cut the total cost of a car loan.

Should I use my trade-in as a down payment?

A trade-in reduces the amount financed the same way a down payment does. The catch is that dealers sometimes offer less than a car's market value in trade, so it can be worth checking a private-sale or instant-offer price before accepting a trade-in figure.

Is a longer loan term better?

A longer term lowers the monthly payment but increases total interest paid, because you're borrowing the money for more months. Very long terms (72–84 months) also raise the risk of being "upside down" — owing more than the car is worth — for much of the loan.

Does this calculator store my information?

No. Everything runs locally in your browser and nothing you type is uploaded, logged or saved anywhere.

What's a typical APR for a car loan?

It depends heavily on credit score, loan term and whether the car is new or used — rates for well-qualified buyers on new cars are usually the lowest, while used-car and subprime loans run noticeably higher. Shop multiple lenders, since dealer financing isn't always the cheapest option.

Does this include registration, title or other fees?

No. It covers vehicle price, sales tax, down payment, trade-in and interest only. Registration, title, documentation and dealer fees are separate and should be budgeted on top of the figures shown here.

This tool is provided for general information only. Verify important figures independently. · Last reviewed: August 25, 2026