Finance
Auto Loan Calculator
Enter the vehicle price, down payment, trade-in, sales tax, APR, and term to estimate your monthly car payment, the amount financed, and the total interest you'll pay.
Quick answer: Your car payment is the amount financed (price + sales tax − down payment − trade-in) amortized over the term; a longer loan lowers the payment but raises total interest.
How it works
1. Find the amount financed
Start with the vehicle price, add sales tax and fees, then subtract your down payment and any trade-in value. The result is the amount you actually finance. A larger down payment lowers the loan and reduces the risk of owing more than the car is worth.
2. Apply the APR and term
The APR (annual percentage rate) is the yearly cost of the loan including most fees, and the term is how many months you pay. The calculator spreads the loan into equal monthly payments. A longer term lowers the monthly payment but increases total interest paid.
3. Watch total interest, not just the payment
Stretching a loan to 72 or 84 months makes the monthly payment look affordable but can pile on interest and leave you underwater. Compare the total of all payments against the price to see the true cost of borrowing. A shorter term with a slightly higher payment usually wins.
Frequently asked questions
How is a car payment calculated?
The amount financed (price plus tax, minus down payment and trade-in) is amortized over the loan term at your APR using the standard loan-payment formula. A longer term lowers the payment but raises total interest.
Does sales tax get financed?
In most states sales tax is added to the amount financed unless you pay it upfront. This calculator adds estimated sales tax to the loan balance.
Should I take a longer loan term?
A 72- or 84-month loan lowers the monthly payment but you pay far more interest and risk being underwater. Shorter terms cost less overall.