Estimate your monthly car payment including sales tax, fees, your down payment and trade-in, and see the total interest and total cost of the vehicle.
How the car payment is calculated
The calculator first works out how much you will borrow, then applies the standard loan payment formula.
Amount financed = Price − trade-in + amount owed on trade-in + sales tax + fees − down payment
In most states, sales tax is charged on the price after subtracting your trade-in, which is how this calculator works. A few states tax the full price, so check your state's rules.
Worked example
You buy a $32,000 car, trade in a car worth $5,000 (fully paid off) and put $4,000 down. Sales tax is 7% and fees are $800.
- Sales tax: 7% × ($32,000 − $5,000) = $1,890
- Amount financed: $32,000 − $5,000 + $1,890 + $800 − $4,000 = $25,690
- At 7% APR for 60 months, the payment is $508.69 and total interest is about $4,832.
Tips for a better car loan
- Get pre-approved by a bank or credit union before visiting the dealer, so you have a rate to compare.
- Negotiate the price, not the payment. A dealer can hit any monthly payment by stretching the term.
- Be careful with 72- and 84-month loans. Lower payments, but much more interest and a higher chance of owing more than the car is worth.
- Follow the 20/4/10 guideline as a sanity check: about 20% down, no more than 4 years, and total car costs under about 10% of income.
Frequently asked questions
Should I lease or buy?
Leasing usually means a lower payment but no ownership at the end and mileage limits. Compare with the lease calculator.
What if I owe more on my trade-in than it is worth?
That is called negative equity. Enter the amount owed and it is added to the new loan, which raises your payment and interest. Paying it down first is usually better.
Related tools
Results are estimates for planning and education only. They are not financial, tax, legal or medical advice. Check important numbers with a qualified professional.