Auto Loan Calculator
Work out your real monthly car payment with sales tax, trade-in value, and fees included - not just the sticker price.
Auto Loan Calculator
Applied after trade-in
Monthly payment
$593.12
- Vehicle (after trade & down)$27,00091%
- Sales tax$2,1007%
- Fees$5002%
Amount financed
$29,600
Total interest
$5,987
Total cost
$43,587
Including trade & down
Paid off
September 2031
Out-the-door cost
- Vehicle price$35,000
- Less trade-in- $5,000
- Sales tax at 7.00%$2,100
- Fees$500
- Less cash down- $3,000
- Amount financed$29,600
Stretching this loan to 84 months would drop the payment to $454.01 but raise total interest to $8,537 - $2,550 more than your 5 years term.
How the auto loan calculation works
A car's advertised price is rarely what you finance. Sales tax, dealer fees, and your trade-in all move the number before the loan is even written, and getting that starting figure wrong is why so many payment estimates come in low. This calculator works out the amount financed first, then the payment.
The amount you actually borrow is:
Amount financed = (price − trade-in − down payment) + sales tax + fees
Sales tax deserves attention because the rule varies by state. In most states — including New York, Texas, and Illinois — tax is charged on the price after the trade-in credit, so trading in a car reduces your tax bill as well as your loan. In a handful of states, notably California and Michigan's partial rules, the credit works differently. This calculator applies tax to the post-trade-in amount, which matches the majority of US states.
Here is a worked example. A $35,000 vehicle, a $5,000 trade-in, and $3,000 cash down leaves $27,000. Apply a 7% sales tax on that $27,000 and you add $1,890, plus about $500 in title, registration, and documentation fees. The amount financed is $29,390. At 7.5% APR over 60 months, that is a payment of $588.94, and $5,946 of total interest.
Three things that quietly cost car buyers money:
- Long terms hide the real price. Stretching from 60 to 84 months on that loan drops the payment to about $449 but pushes total interest past $8,400. You feel the relief monthly and pay for it for seven years.
- Negative equity rolls forward. If you owe more on your trade-in than it is worth, dealers will often add the difference to the new loan. You are then paying interest on a car you no longer own.
- The payment is negotiable because the price is. Dealers can hit almost any monthly payment by extending the term. Negotiate the out-the-door price and the APR separately, then check what payment those produce.
Enter your figures above to see the amount financed, the payment, and the total interest.
Disclaimer: This calculator provides estimates for informational purposes only and is not financial advice. Your actual rate, taxes, fees, and payment will vary - confirm figures with a licensed lender or financial professional.
Frequently asked questions
Is sales tax charged before or after my trade-in?
In most US states, sales tax is calculated after the trade-in credit is applied, so a trade-in lowers both your loan and your tax bill. A few states tax the full purchase price regardless. This calculator applies tax after the trade-in, matching the majority rule - check your state if the figure matters precisely.
What loan term should I pick for a car?
Sixty months or less is the common guidance. Longer terms such as 72 or 84 months lower the payment but greatly increase total interest, and they leave you owing more than the car is worth for much of the loan, since vehicles depreciate faster than the balance falls.
How much should I put down on a car?
Around 20% on a new car and 10% on a used one is the usual rule of thumb. A larger down payment offsets the steep first-year depreciation, which is what keeps you from going underwater on the loan.
Does my credit score change the payment much?
Substantially. The spread between excellent and subprime auto rates is often 10 percentage points or more. On a $30,000 60-month loan, moving from 5% to 15% APR adds roughly $130 to the monthly payment and about $8,000 in total interest.
Should I take dealer financing or get my own loan?
Get a pre-approval from a bank or credit union first, then let the dealer try to beat it. Manufacturer promotional rates can be excellent on new cars, but a pre-approval gives you a real benchmark and removes the pressure to accept whatever is offered in the finance office.
What fees should I expect beyond the price?
Title and registration, a documentation or dealer processing fee, and sometimes a destination charge on new vehicles. Documentation fees vary widely by state - some cap them by law, others do not. Ask for the out-the-door price in writing so nothing appears late.
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