Finance
Car Loan Calculator
Calculate your car loan payment including trade-in value, down payment, sales tax, and see the true total cost of ownership.
Monthly Cost Estimates (optional)
Enter vehicle details and click Calculate
How is this calculated?
Net Price = Vehicle Price – Trade-In Value
Tax Amount = Net Price × Sales Tax Rate
Amount Financed = Net Price + Tax Amount – Down Payment
Monthly Payment = Amount Financed × [r(1+r)^n] / [(1+r)^n – 1]
Total Cost = Monthly Payment × n + Down Payment + Trade-InFAQ
Frequently asked questions about car loans
How is a car loan payment calculated?
Car loan payments use the standard amortization formula applied to the amount financed (vehicle price minus down payment minus trade-in plus sales tax). M = P × [r(1+r)^n] / [(1+r)^n – 1].
Should I include sales tax in my car loan?
Most buyers roll sales tax into the loan. Our calculator adds tax to the financed amount so you see the true monthly payment. Some states allow tax credits on trade-ins.
How does a trade-in reduce my car loan?
A trade-in value is subtracted from the vehicle price before financing. This reduces your loan principal, monthly payment, and total interest paid over the loan term.
What is a good interest rate for a car loan?
As of 2024, good rates range from 4-7% for new cars and 5-9% for used cars with good credit (700+). Rates vary by credit score, loan term, and whether the car is new or used.
Is a longer car loan term better?
Longer terms (72-84 months) have lower monthly payments but cost significantly more in interest. You also risk being "upside down" (owing more than the car is worth). 48-60 months is ideal.
How much should I put down on a car?
Financial experts recommend 20% down on a new car and 10% on a used car. A larger down payment reduces monthly payments, total interest, and the risk of negative equity.