Estimate your monthly car loan payment, including sales tax, fees, and total interest.
Rates as of Q2 2025 (example)
| Period | Date | Payment | Principal | Interest | Balance |
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An auto loan calculator estimates your monthly car payment based on the vehicle price, your down payment and trade-in value, the loan term, and an interest rate. It also accounts for sales tax and fees, which are often rolled into the loan amount, so you get a realistic picture of what financing a car actually costs each month — and over the life of the loan.
The loan amount is the vehicle price plus sales tax and fees, minus your down payment and trade-in value. The monthly payment is then calculated using the standard loan amortization formula:
Formula: M = P × [r(1+r)n] / [(1+r)n − 1], where P is the financed amount, r is the monthly interest rate (annual rate ÷ 12), and n is the loan term in months.
Example: For a $35,000 vehicle with a $5,000 down payment, no trade-in, a 7% sales tax, $500 in fees, a 5-year term, and a 6.5% interest rate (example rate — enter your actual rate), the financed amount comes to about $32,950, with a monthly payment of roughly $645. (Note: all figures in this example are for illustration purposes only and do not represent actual rates or market conditions.)
In most US states, sales tax is charged on the vehicle purchase price (sometimes reduced by your trade-in value, depending on the state) and is commonly rolled into the loan amount along with title and registration fees. Auto loan terms typically range from 36 to 72 months — longer terms lower the monthly payment but increase total interest paid and raise the risk of being "underwater" (owing more than the car is worth). Interest rates vary based on whether the vehicle is new or used, your credit score, and the lender (example rate used in this calculator — actual rates vary by lender and market conditions).
Yes — you can enter your local sales tax rate and any title, registration, or documentation fees, and the calculator adds them to the vehicle price (minus your down payment and trade-in) to estimate the total amount financed.
Your trade-in value is subtracted from the amount you need to finance, just like a down payment, which reduces both your loan amount and monthly payment. In some states, trade-in value also reduces the amount sales tax is calculated on.
Auto loan terms commonly range from 36 to 72 months (3 to 6 years), with some lenders offering up to 84 months. Shorter terms have higher monthly payments but lower total interest.
No — the default rate is an example only. Auto loan rates vary based on whether the vehicle is new or used, your credit score, and the lender, and change frequently, so always use a rate from an actual loan offer.
Being underwater means you owe more on the loan than the car is currently worth. This is more likely with longer loan terms, smaller down payments, or vehicles that depreciate quickly.
Extra payments reduce your principal balance faster, which lowers the total interest you pay and can help you pay off the loan — and reach positive equity — sooner than the original term.
Disclaimer: The information, rates, and figures provided on this page are for educational and illustrative purposes only. All rates and examples shown are sample values and do not reflect current or actual market rates. Financial rules and regulations change frequently. Always consult a qualified financial advisor, tax professional, or lender before making any financial decisions.