Auto Loan Calculator
Estimate your monthly car payment and total cost including interest.
Manufacturer rebate, if any
Your old car's value
Negative equity — rolls into the new loan
Monthly Payment
$605.95
for 60 months at 7.5% APR
How the amount financed is calculated
- Vehicle price
- $32,000
- − Down payment
- −$4,000
- + Sales tax (7%)
- +$2,240
- Amount financed
- $30,240
Amount Financed
$30,240
The loan principal
Due at Signing
$4,000
Down payment
Total Interest
$6,117
Over 60 months
Sales Tax
$2,240
7% of price
Total Cost
$40,357
Price + tax + fees + interest
How to use this calculator
- Enter the vehicle price — the agreed price of the car.
- Add your down payment, trade-in value and any cash incentives — each of these reduces the amount you need to finance.
- Enter ‘Owed on Trade-In’ if you still have a balance on the car you are trading in — this negative equity rolls into the new loan.
- Set the sales tax rate, fees, interest rate (APR) and loan term (in months).
- Use the toggles to match your situation: whether the trade-in reduces sales tax, and whether tax and fees are financed or paid at signing.
The breakdown panel shows exactly how the amount financed is derived, and the monthly payment updates instantly.
How it works
A car loan is a fully amortized installment loan — a fixed monthly payment over a set number of months, with the balance ending at zero. The math is the same as any loan; what makes a car deal different is working out how much you actually borrow.
The amount financed is built up from the deal:
- Start with the vehicle price.
- Subtract the down payment, the trade-in value, and any manufacturer cash incentives.
- Add any negative equity still owed on the trade-in.
- Add sales tax and title/registration fees — if you choose to finance them rather than pay them at signing.
That final figure is the loan principal. The monthly payment, total interest, and total cost of the car follow from it and the APR.
Frequently Asked Questions
How is the amount financed on a car loan calculated? ▾
It starts with the vehicle price, then adds sales tax and any title and registration fees, and subtracts your down payment, trade-in value and any cash incentives. If you still owe money on the car you are trading in, that negative equity is added back on. The result is the amount you actually borrow — and the figure the monthly payment is based on.
Does a trade-in reduce the sales tax I pay? ▾
In most US states, yes — you pay sales tax only on the price after the trade-in is deducted, not the full sticker price. A few states do not allow this credit. The calculator has a toggle for it; turn it off if your state taxes the full price.
Should I roll the sales tax and fees into the loan? ▾
That is your choice, and it changes the result. Financing tax and fees means a smaller amount due at signing but a larger loan and slightly more interest. Paying them upfront means more cash now but a smaller loan. The calculator lets you toggle between the two so you can compare.
What is negative equity on a trade-in? ▾
Negative equity means you owe more on your current car than it is worth. When you trade it in, that shortfall does not disappear — it gets added to your new loan. The 'Owed on Trade-In' field captures this, so the monthly payment reflects the real amount borrowed.
Why is the APR more important than the sticker rate on a car loan? ▾
APR includes the interest rate plus mandatory finance charges, so it reflects the true yearly cost of borrowing. When comparing dealer financing against a bank or credit union, compare APRs — a lower sticker rate with higher fees can cost more than a higher rate with none.