Car Loan Calculator
Estimate monthly payments, total interest, and total cost for a car loan. Enter vehicle price, down payment, trade-in value, sales tax, fees, interest rate, and term.
How the Car Loan Calculator Works
This car loan calculator estimates monthly payments using the standard amortization formula. It computes the taxable amount, applies sales tax percent, adds fees, subtracts down payment and trade-in value, and arrives at the loan principal. Given an annual interest rate and loan term in years, the tool calculates the monthly payment that covers principal and interest.
The core monthly payment formula is:
payment = P × r / (1 − (1 + r)-n)
where P is the principal, r is the monthly interest rate (annual rate / 12), and n is the number of months. If r is zero then payment equals P / n.
Use this tool for budgeting, comparing loan offers, and understanding how down payments, trade-ins, and extra payments affect total cost.
Understanding the Car Loan Calculator Inputs
This car loan calculator helps you estimate your monthly auto loan payment, total interest and full out-of-pocket cost including vehicle price, taxes and dealer fees. It is useful when negotiating with dealerships or comparing lenders.
Inputs Explained
Vehicle price: The sticker price of the car before taxes or discounts.
Down payment: The upfront amount you pay to reduce the financed loan amount.
Trade-in value: The amount the dealer credits you for your old vehicle. This reduces the taxable cost of the new car in many regions.
Sales tax percentage: Enter the tax rate applied in your location. Different states or countries have different auto tax rules.
Dealer and registration fees: One-time charges such as documentation fees, title, plates and registration.
Interest rate: The annual percentage rate of your auto loan. This strongly impacts your total interest cost.
Loan term (years): Usually between 3 and 7 years. Shorter terms save interest but have higher monthly payments.
Outputs Explained
Principal: The actual amount borrowed after subtracting down payment and trade-in and adding tax and fees.
Monthly payment: Your required monthly installment including principal and interest.
Total interest: The total cost of borrowing over the full loan duration.
Use this calculator to understand the real cost of owning a car and compare dealer financing, bank financing and credit union offers.
Frequently Asked Questions
What is included in the loan principal?
Principal equals vehicle price minus down payment and trade-in, plus sales tax and fees.
Does this calculator include insurance?
No. Insurance and maintenance are not included. Add those separately when budgeting.
How does sales tax apply?
Sales tax is applied to (vehicle price minus trade-in) in this tool. Some regions tax differently; adjust inputs accordingly.
Is my input saved?
No. All calculations run locally in your browser and nothing is transmitted or saved.