Calculate Your Car Payment
The sticker price is only part of what you finance when buying a car. This auto loan calculator includes sales tax, title and registration fees, your down payment, and your trade-in, including any amount still owed on it. It shows the amount financed, your monthly payment, total interest, total cost and a full amortization schedule. You can also add an extra monthly payment to see how much sooner you could pay the car off.
How the Amount Financed Is Calculated
Sales tax is charged on the vehicle price minus your trade-in value, which is how most U.S. states handle it. Amount financed = price + sales tax + fees − trade-in value + amount owed on the trade-in − down payment.
Example: a $35,000 car with a $8,000 trade-in, $5,000 down, 6% sales tax ($1,620) and $800 in fees means financing $24,420. At 6.5% APR for 60 months, the payment is about $477.81 a month, with about $4,248 in total interest.
Tips for a Better Car Loan
- Get pre-approved by a bank or credit union before visiting the dealer, so you can compare offers.
- Keep the term to 60 months or less when you can. Longer loans cost more interest and can leave you owing more than the car is worth.
- Negotiate the vehicle price separately from the monthly payment.
- Avoid rolling negative equity from your old car into the new loan when possible.
Frequently Asked Questions
What is a good interest rate for a car loan?
Rates depend on your credit score, the loan term and whether the car is new or used. Borrowers with excellent credit get the lowest rates, while used-car loans and longer terms usually cost more. Compare quotes from several lenders.
What happens if I owe more on my trade-in than it is worth?
That is called negative equity. The difference is usually added to your new loan, which raises your payment and total interest. Enter both the trade-in value and the amount owed to see the effect.
Should I choose a 72- or 84-month car loan?
Longer terms lower the monthly payment but increase total interest, and the car may lose value faster than you pay down the loan. Compare terms in the calculator to see the total cost of each.