Auto Loan Calculator

Car loan payment from vehicle price, down payment, trade-in, sales tax and fees: monthly payment, total interest and total cost.

$
$
$
What the dealer gives you for your old vehicle, before paying off any loan on it.
$
The dealer pays this off and adds it to the new loan. If it exceeds the trade-in value (negative equity), the difference is financed.
%
Your rate is remembered on this device.
$
Your rate is remembered on this device.
%
months
Monthly payment
$597.77
Amount financed
$30,920.00
Sales tax
$1,920.00
Total interest
$4,946.21
Total of all payments
$35,866.21
Total cost (down + trade-in equity + all payments)
$38,866.21

Estimate generated with SortedSums: https://sortedsums.com/auto-loan-calculator/. For informational purposes only; verify before relying on it.

Estimate only. This tool is for informational and educational purposes. Results depend on your inputs and simplifying assumptions, and are not a substitute for professional engineering, design or financial advice. Always verify with a qualified professional and applicable codes before purchasing, building or making decisions.

How it’s calculated

The amount you borrow is the vehicle price plus sales tax and any financed fees, minus your down payment and your trade-in equity (its value minus any loan still owed on it). It is repaid with equal monthly payments like any amortized loan.

Sales tax = (Price − trade-in) × tax rate (or Price × tax rate) Trade-in equity = Trade-in value − amount still owed on it Amount financed = Price + tax + fees − down payment − trade-in equity i = APR ÷ 12 Payment = Financed × i ÷ (1 − (1 + i)^−n)

Example (OpenStax Principles of Finance 8.3): $32,000 financed for 36 months at 6% gives a payment of about $973.50 and roughly $3,046 of interest. With the defaults ($32,000 car, $3,000 down, 6% tax on $32,000 = $1,920, 60 months at 6%): financed = 32,000 + 1,920 − 3,000 = $30,920, so the payment is about $597.77.

Assumptions: sales tax is charged on the price (optionally reduced by the full trade-in value, as most U.S. states allow) and is financed along with the fees; fees themselves are not taxed; interest is charged monthly at APR ÷ 12 with the first payment one month after signing. Tax rules for trade-ins, rebates and fees vary by state and country. Dealer add-ons such as extended warranties also raise the amount financed; compare offers on total cost, not just the monthly payment.

Frequently asked questions

Is a longer loan term better?

A longer term lowers the monthly payment but raises the total interest, and you may owe more than the car is worth for longer.

Does a trade-in reduce sales tax?

In most U.S. states, sales tax is charged on the price minus the trade-in value; a few states tax the full price. Choose the option that matches your state.

Should I finance taxes and fees?

Paying them upfront means borrowing less and paying less interest. Financing them is convenient but costs more over the loan.

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Sources

Formulas are taken from the free public references above. Results are provided “as is” for informational and educational purposes only. See our disclaimer.

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