How to use the Auto Loan Calculator tool
3 simple steps · under a minute
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Enter the car price
Type the price of the new or used car you want to buy.
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Add down payment, trade-in and tax
Enter your cash down payment, trade-in value and your state sales tax rate.
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Pick the rate and term
Choose the APR and term to see your monthly car payment and total interest.
About Auto loan calculator
This auto loan calculator, also known as a car payment calculator, estimates the monthly payment on a new or used car loan. Unlike simple calculators, it includes your state sales tax, cash down payment, trade-in value and any amount still owed on your trade-in, so the result matches what a dealer or bank will quote you.
Longer car loans of 72 or 84 months lower the monthly payment but add a lot of interest, and they make it easier to owe more than the car is worth. Use the schedule to compare terms, and aim for the shortest term with a payment you can comfortably afford.
Real car payment
Includes sales tax, trade-in, negative equity and your down payment — not just the sticker price.
Compare loan terms
Switch between 36, 48, 60, 72 and 84 months to see how the term changes payment and interest.
Amortization schedule
See how much interest and principal you pay each year of the car loan.
Frequently asked questions
How is a car payment calculated?
The loan amount (price + sales tax − down payment − trade-in) is repaid in equal monthly payments: payment = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where r is the monthly rate and n the number of months.
Is sales tax included in a car loan?
Usually yes. Most buyers roll sales tax into the loan. In most US states, tax is charged on the price after subtracting the trade-in value.
What is a good APR for a car loan?
It depends on your credit score and whether the car is new or used. Borrowers with excellent credit get the lowest rates; used cars and lower scores pay more. Compare offers from banks, credit unions and dealers.
How long should a car loan be?
60 months or less is a common rule of thumb. Longer loans lower the payment but cost more interest and raise the risk of negative equity.
What is negative equity?
Owing more on your current car than its trade-in value. That difference is added to the new loan, which you can enter in “Still owed on trade-in”.