Car loan calculator

How to estimate a car loan payment

Use the vehicle’s agreed price, the cash you plan to put down, and any trade-in value. Enter the annual interest rate, the number of monthly payments and the applicable sales tax percentage. The calculator estimates a fixed payment with sales tax included in the amount borrowed.

1. Separate the price from the loan amount. Enter the price before tax, then add down payment and trade-in in their own fields. Do not subtract either from the vehicle price first.
2. Check the tax assumption. This model taxes price minus trade-in. Local rules differ, so compare the calculated tax with the dealer’s itemized quote.
3. Compare more than the monthly payment. Keep the price and rate unchanged while testing terms, then compare total interest and the remaining balance.

A car loan example, from price to payment

This fixed example matches the starting car scenario in US dollars. It is an illustration, not a dealer quote or a current market rate, and stays unchanged when you edit the calculator.

Vehicle price

$38,000.00

6% sales tax, with no trade-in

$2,280.00

Cash down payment

$5,000.00

Amount borrowed: price + tax − cash down

$35,280.00

7.2% interest over 60 months

$701.92 / month

Total interest over the term

$6,835.21

With a $3,000 trade-in added to this same example, the assumed taxable price becomes $35,000. Tax becomes $2,100.00, the loan principal becomes $32,100.00, and the payment becomes $638.65 per month.

What changes with a longer car loan?

These scenarios finance the same $35,280 at 7.2%. A longer term spreads the principal across more payments, but interest continues to accrue for more months.

The balance chart shows the debt still owed. It does not estimate the vehicle’s resale value, so it cannot tell you whether selling or trading in the vehicle would cover the outstanding loan.

Check the assumptions against your quote

The estimate finances all calculated sales tax. If your quote finances extra costs, this estimate will not match unless the financed principal is reconciled.

Trade-in value reduces both principal and the assumed taxable price. The calculator does not model a balance still owed on the trade-in, negative equity or local restrictions on trade-in tax credits. Use the dealer’s actual tax and payoff figures when assessing an offer.

The payment model uses the annual interest rate divided by 12 and regular monthly payments. A contract based on daily interest, irregular payment dates or precomputed interest may give different results. “Total of all payments” excludes cash down and trade-in value; it is not the total cost of owning the car.