🚗 Car Loan Calculator
Estimate your monthly auto loan payment and total interest, factoring in a down payment, trade-in value, sales tax, interest rate and loan term.
Amount financed first, then the payment
Two steps. The tool adds sales tax to the sticker price, then subtracts your cash down payment and trade-in value to get the amount financed:
Financed = price + (price x tax%) - down - trade-in
Payment = Financed x i x (1 + i)^n / ((1 + i)^n - 1)Here i is the APR divided by 12 and n is the term in
months. On the defaults - $32,000, 7% tax, $4,000 down, 6.5% APR, 60 months -
tax is $2,240, so $30,240 is financed and the payment is $591.68. Total of
payments is $35,500.82, of which $5,260.82 is interest.
Term length is where the money leaks
Same $30,240 at 6.5%, different terms:
| Term | Payment | Total interest |
|---|---|---|
| 48 months | $717.14 | $4,183 |
| 60 months | $591.68 | $5,261 |
| 72 months | $508.33 | $6,360 |
| 84 months | $449.05 | $7,480 |
Stretching 48 months to 84 saves $268 a month and costs $3,297 extra. It also keeps you underwater longer, since a car depreciates faster than an 84-month loan amortizes.
Frequently asked questions
Is the down payment taken before or after sales tax?
After. Tax is added to the price first, then the down payment and trade-in come off the total. A $4,000 deposit on a $32,000 car with 7% tax leaves $30,240 financed, not $28,000.
What is the payment on a $32,000 car at 6.5%?
With $4,000 down, 7% sales tax and a 60-month term, $591.68 a month. Drop the down payment to zero and it rises to $669.94.
Does APR include dealer fees?
APR is meant to, but doc fees, registration and add-ons like gap insurance are often rolled into the amount financed rather than the rate. Add them to the vehicle price to see their real cost over the term.