A typical new-car loan
A $28,000 car with an 8% sales tax, $500 in fees, $3,000 down and no trade-in, financed at 6.5% over 5 years, costs $542.76 a month.
Auto loan calculator
This is an estimate for information only. Actual tax, fees and rates depend on your lender, dealer and location.
Result
Fill in the fields to see your result.
How it works
The amount you actually finance is rarely the sticker price: tax and fees add to it, while a down payment and trade-in value subtract from it. That financed amount is then amortized like any other loan.
The total interest and total cost figures let you compare offers with different terms or rates on equal footing, beyond the monthly payment alone.
Formulas used
Amount financed
Financed = Price + Tax + Fees − Down payment − Trade-in
Monthly payment
M = P × i ÷ (1 − (1 + i)^−n)
- P
- amount financed
- i
- monthly interest rate
- n
- number of monthly payments
Worked examples
With a trade-in
The same car with a $6,000 trade-in reduces the financed amount and drops the payment to $425.37 a month.
Assumptions and limits
- Interest compounds monthly and payments are made monthly, in full and on time.
- Sales tax is applied to the full vehicle price.
- No prior loan balance is being rolled into this one.
Frequently asked questions
Does the trade-in reduce the sales tax?
In many US states, yes — the tax applies only to the price minus the trade-in. This calculator taxes the full price to stay conservative; check your state's rule and adjust the fee field if needed.
What is a good interest rate for a car loan?
It depends mainly on credit score, loan term and whether the car is new or used; shorter terms and stronger credit generally get lower rates.
Should I put more money down?
A larger down payment lowers the financed amount and the total interest paid, and can help avoid owing more than the car is worth early in the loan.
Does a longer term always cost more?
A longer term lowers the monthly payment but increases total interest paid, since the balance takes longer to shrink.
Updated
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