📌 Overview

Calculate your car loan monthly payment, total interest and full cost including down payment, trade-in value and optional sales tax.

🚗 Car Loan Calculator

Calculate your car loan monthly payment, total interest and full cost including down payment, trade-in value and optional sales tax.

Vehicle price

Down payment

Trade-in value

Sales tax (%)

Loan term (years)

Annual rate (%)

🔒 All processing happens in your browser. No data is uploaded to any server.

📋 How to Use

Enter the vehicle price.
Add your down payment and any trade-in value.
Set the loan term and annual interest rate.
Click Calculate to see the monthly payment breakdown.

❓ FAQ

Does a longer term save money?

It lowers the monthly payment but increases total interest. A 7-year loan can cost thousands more than a 4-year loan on the same car.

Should I include sales tax in the loan?

Many buyers do finance the tax. This calculator lets you add a tax rate so the monthly figure reflects what you will actually pay.

❓ More Questions

Is a longer loan term more cost-effective?

A longer term lowers the monthly payment but greatly increases total interest. A 7-year loan on the same car can cost tens of thousands more in interest than a 4-year loan.

Is the dealer's zero interest really true?

It usually requires giving up cash discounts or bundling insurance and accessories to offset it, so the true all-in cost is not necessarily lower. Use this tool to calculate and compare the total spend of both options.

💡 Use Cases

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Budget Check

See if the monthly payment fits your income.

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Compare Terms

Weigh 3-year vs 5-year total cost.

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Negotiate

Know the real numbers before the dealership.

🔗 Related Tools

📖 Deep Dive: Car Loan Calculator

How the monthly car payment is calculated

A car loan is an equal-installment amortizing loan. The payment formula is M = P times r times (1+r)^n divided by ((1+r)^n - 1), where P is the loan principal (price - down payment - trade-in + fees), r is the monthly rate (annual rate divided by 12), and n is the total number of months.

A real example

Car price 200000, down payment 60000, loan 140000, annual rate 5%, term 5 years: monthly payment about 2642, total interest about 18500, total cost about 218500. If the term is shortened to 3 years, the monthly payment rises to about 4196 but interest drops to about 11000, saving about 7500.

Often-overlooked costs

One-time fees such as handling, GPS, and service charges.

Full-coverage insurance requirement: usually mandatory during the loan period.

Prepayment penalty: some contracts charge 1%-3% of the remaining principal.

The monthly rate trap

Sales often quote a monthly rate of 0.3%, which sounds low but is calculated on the original principal, so the real annual rate is close to 6.5%, more than double the nominal value. Always ask for the annual percentage rate (APR) in writing before signing.