Auto Loan Calculator
Work out your real car payment — not just the sticker price. Enter the vehicle price, your down payment, any trade-in value, the sales tax rate, the interest rate, and the term, and the calculator shows your monthly payment, the amount you're actually financing (including tax), and the total interest you'll pay.
Monthly payment
$583.10
How to Use
Enter the vehicle price and your down payment, then add any trade-in value and your local sales tax rate. Set the interest rate (APR) and loan term. The calculator instantly shows your monthly payment, the amount financed, the sales tax, and the total interest. Adjust the down payment or term to see how the monthly payment changes.
Why This Tool Is Useful
Dealers focus on the monthly payment, which hides how much you're really paying once tax, interest, and a long term are added in. This calculator shows the full picture — including how a trade-in reduces both the amount financed and (in most US states) the taxable amount — so you can negotiate from the real numbers and avoid stretching the term just to lower the payment.
How Auto Loans Work
A car loan is an installment loan: you borrow the price of the car (plus tax, minus any down payment and trade-in) and repay it in fixed monthly installments that cover interest and principal. The amount financed, the interest rate (APR), and the term determine your payment.
Because cars lose value quickly, the structure of the loan matters — a longer term lowers the payment but increases total interest and the risk of owing more than the car is worth.
Trade-In and Sales Tax
A trade-in does two things: it reduces the amount you need to finance, and in most US states it also reduces the amount subject to sales tax (you're taxed on the price minus the trade-in). This calculator applies tax to the price minus the trade-in, which is the common rule.
Sales tax is usually rolled into the loan, so it increases the amount financed — which is why the 'amount financed' figure can be higher than the price minus your down payment.
Down Payment and Loan Term
A larger down payment lowers the amount financed and the monthly payment, and reduces the risk of going 'underwater' (owing more than the car is worth). A longer term lowers the monthly payment but costs more in total interest.
The reference table below shows the monthly payment per $10,000 borrowed across common terms and rates.
The 20/4/10 Rule
A popular guideline for affordable car buying: put at least 20% down, finance for no more than 4 years, and keep total monthly vehicle costs (payment plus insurance) under 10% of your gross income.
It's conservative, but following it keeps you from overextending and helps you build equity in the car rather than interest for the lender.
Monthly Payment per $10,000 Borrowed
| Loan term | 5% APR | 7% APR | 9% APR |
|---|---|---|---|
| 36 months | $299.71 | $308.77 | $318.00 |
| 48 months | $230.29 | $239.46 | $248.85 |
| 60 months | $188.71 | $198.01 | $207.58 |
| 72 months | $161.05 | $170.49 | $180.26 |