Car Loan / Auto Loan Calculator
Determine your real monthly vehicle payment and overall financing commitment before negotiating at the car dealership. This auto loan calculator factors in vehicle purchase price, down payment, trade-in credit, sales tax, and dealer documentation fees, giving you the true cost of car ownership with zero server delay.
Agreed sticker or negotiated vehicle price
Upfront cash paid to reduce loan principal
Net trade-in credit granted for your current car
Fixed annual percentage rate from your lender
Repayment period (e.g., 36, 48, 60, 72, 84 months)
State or regional motor vehicle sales tax
Documentation, registration, and destination charges
Estimated monthly installment due to lender
How to Use This Calculator
- Enter the vehicle purchase price negotiated with the dealership or private seller.
- Input your cash down payment and trade-in value to reduce the borrowed principal.
- Enter your quoted annual percentage rate (APR) and select your repayment term in months.
- Add applicable state vehicle sales tax and mandatory documentation or registration fees.
- Review your monthly payment, cumulative interest, and total acquisition outlay instantly.
Formula & Calculation Methodology
The standard auto loan monthly installment is computed on the net financed principal (vehicle price minus down payment and trade-in value, plus sales tax and dealer fees) using monthly reducing balance amortization.
Worked Example
Purchasing a $35,000 sedan with $5,000 down, $2,000 trade-in, 6.5% APR over 60 months, 7% sales tax, and $500 dealer fees
Frequently Asked Questions
How does a trade-in affect my auto loan and sales tax?↓
A trade-in reduces the net cash balance you need to borrow. Furthermore, in most states, sales tax is assessed only on the price difference between your new vehicle and your trade-in allowance, providing immediate tax savings.
Is it better to choose a 48, 60, or 72-month auto loan term?↓
Shorter terms (36–48 months) have higher monthly payments but substantially lower overall interest charges and faster equity building. Longer terms (72–84 months) lower the monthly payment but dramatically increase interest and increase the risk of negative equity.
How can I lower my auto loan interest rate before buying?↓
You can secure lower rates by improving your credit score, offering a larger down payment (aim for at least 20%), getting pre-approved by a credit union or bank before dealer visits, and considering shorter loan durations.
What is the difference between dealer financing and direct bank financing?↓
Direct financing involves getting a pre-approved auto loan from a bank or credit union before shopping. Dealer financing arranges financing through the dealership finance department, which may add a discretionary rate markup.
What ongoing vehicle ownership costs are not included in this loan calculation?↓
This calculator models initial vehicle purchase financing only. It excludes recurring vehicle expenses such as comprehensive insurance, fuel or charging, routine maintenance, tires, annual registration renewals, and parking fees.
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Open calculator →Source Citation & Disclaimer
Informational tool only; not licensed tax, legal, or financial advice.