Car Loan (Auto) Calculator

Get your monthly car payment with sales tax, dealer fees, down payment and trade-in all included.

Quick answer

A car loan calculator works out your monthly auto payment after sales tax, fees, down payment and trade-in. Financing $30,000 at 5% APR for 60 months costs $566.14 a month and about $3,968 in interest. Shorter terms raise the payment but cut interest and the risk of negative equity.

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$
$
%
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Monthly payment
$650.57
Amount financed
$33,250
Sales tax
$2,450
Total interest
$5,784
Total cost of car
$44,034
After your $5,000 down payment and $0 trade-in, you finance $33,250 (including $2,450 sales tax). At 6.5% APR over 60 months, that is $650.57 a month. All in, the car costs you $44,034, with $5,784 going to interest. A shorter term raises the payment but cuts interest.

Key takeaways

  • Most US states tax the price after trade-in credit.
  • Tax and fees are usually rolled into the loan.
  • 72–84 month terms raise total interest significantly.
APR — Annual percentage rate: the yearly cost of borrowing, including certain fees.

How the car loan calculator works

In most US states, sales tax applies to the price after your trade-in credit. Fees and tax are usually rolled into the loan. The payment then follows the standard amortization formula over the term in months.

Formula

Tax = (price − trade-in) × tax rate Financed = price + tax + fees − down payment − trade-in Payment = F × r(1+r)^n ÷ ((1+r)^n − 1)

Standard formula. Further reading: CFPB – Auto loans · Investopedia – Amortization

Worked example

Finance $30,000 at 5% APR for 60 months: r = 0.05/12, n = 60. Payment = $566.14, total interest $3,968.

Change any number above and the plain-English explanation updates instantly with your own figures.

Frequently asked questions

What is a good car loan term?

48–60 months keeps interest manageable. 72–84 month loans lower payments but increase interest and the risk of owing more than the car is worth.

Is sales tax charged on the trade-in?

Most states tax only the difference between price and trade-in, but a few tax the full price. Check your state.

How much should I put down?

Around 10–20% helps you avoid negative equity as the car depreciates.

Should I take 0% APR or a cash rebate?

Compare both with this calculator: run the rebate price at your bank's rate against the full price at 0%.

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Results are estimates for educational purposes and are not financial advice.

Written and reviewed by Muhammad Asif, founder of CalcPane · Formulas verified by automated tests · Updated