A car loan calculator estimates your monthly payment from the vehicle price, down payment, trade-in, sales tax, fees, APR and loan term. This free car loan calculator also shows total interest, the total cost of the car and how a 36 to 84 month term changes both, with the working shown.
Quick answer: Amount financed = price + sales tax + fees − down payment − trade-in equity. Payment = L × r ÷ (1 − (1 + r)−n), with r the APR ÷ 12 and n the months. A $32,000 car with $3,000 down, 7% tax, $500 fees and a 7% APR over 60 months finances $31,740.00 and costs $628.49 a month.
How to use this car loan calculator
Pick Find my payment or The car price I can afford, then fill in the boxes. The car loan calculator updates as you type, and the term buttons run from 24 to 84 months. Everything in the car loan calculator is an editable example: type the price, tax rate and APR from your own offer. The same car loan calculator also works as an auto loan calculator for trucks, vans and motorcycles.
| Input | What it means |
|---|---|
| Vehicle price | The price before tax and fees; ask for the out-the-door price in writing |
| Down payment | Cash you pay up front, which lowers the amount financed |
| Trade-in value and amount owed | What the dealer pays for your old car, and what you still owe on it |
| Sales tax rate | Your state or province total; the car loan calculator can apply it to the price minus the trade-in or to the full price |
| Fees | Documentation, title and registration fees |
| Roll tax and fees into the loan | On: they are financed. Off: you pay them at signing |
| APR and term | The yearly rate and the number of monthly payments |
| Extra payment | Money added to every payment to pay the loan off sooner |
Car payment calculator: the formula explained
A car loan is an amortizing loan with equal monthly payments. The car payment calculator does two steps: first it works out how much you finance, then it applies the loan formula.
Formula: L = price + tax + fees − down payment − (trade-in value − amount owed). Payment = L × r ÷ (1 − (1 + r)−n). L is the amount financed, r the APR ÷ 12 and n the number of monthly payments.
Example 1: $32,000 car, $3,000 down, 60 months at 7%
Sales tax is $32,000 × 7% = $2,240.00. Adding $500 in fees gives a total of $34,740, and after the $3,000 down payment you finance $31,740.00. With r = 7% ÷ 12 = 0.58333% and n = 60, the payment is $628.49 a month. You repay $37,709.40 in total, which includes $5,969.40 of interest, so the car costs $40,709.40 including tax, fees and interest.
Example 2: a trade-in with negative equity, 72 months
You trade in a car worth $8,000 but owe $10,000, so you have $2,000 of negative equity. The sales tax drops to ($32,000 − $8,000) × 7% = $1,680.00, but the $2,000 you owe is added to the new loan. You finance $33,180.00, the payment over 72 months is $565.69 and the interest is $7,549.39.
Example 3: how much car can I afford on $550 a month?
A $550 payment at 7% over 60 months supports a loan of $27,776.10. With $3,000 down, $500 in fees and 7% tax rolled in, that means a car priced at about $28,295. Switch the car loan calculator to The car price I can afford to run this with your own numbers.
Car loan calculator with trade in: how equity works
Your trade-in equity is its value minus what you owe. Positive equity works like a down payment. Negative equity (being upside down) is added to the new loan, so you pay interest on money that bought nothing new. The FTC suggests researching your car’s trade-in value and settling the price of the new car before you discuss the trade-in; see its guide to financing or leasing a car. This table uses the $32,000 car at 7% over 60 months with $3,000 down.
| Trade-in value | You owe | Equity | Amount financed | Payment | Total interest |
|---|---|---|---|---|---|
| $0 | $0 | $0 | $31,740 | $628.49 | $5,969 |
| $5,000 | $0 | $5,000 | $26,390 | $522.55 | $4,963 |
| $8,000 | $3,000 | $5,000 | $26,180 | $518.40 | $4,924 |
| $8,000 | $8,000 | $0 | $31,180 | $617.40 | $5,864 |
| $8,000 | $10,000 | -$2,000 | $33,180 | $657.00 | $6,240 |
| $8,000 | $12,000 | -$4,000 | $35,180 | $696.61 | $6,616 |
Car loan calculator with tax: how sales tax is applied
Sales tax on a vehicle is a percent of the price, and the rules differ by place. In many US states the tax applies to the price minus your trade-in, so a trade-in lowers the tax. Some states tax the full price, so tick the box for that rule. Five US states have no statewide sales tax, though other fees may apply, and local rates can add to the state rate. Check your state revenue or motor vehicle agency for the exact rule.
| Tax rate | Tax on $32,000 | Tax on $24,000 (after an $8,000 trade-in) | Saved by the credit |
|---|---|---|---|
| 0% | $0 | $0 | $0 |
| 4% | $1,280 | $960 | $320 |
| 6% | $1,920 | $1,440 | $480 |
| 7% | $2,240 | $1,680 | $560 |
| 8% | $2,560 | $1,920 | $640 |
| 9% | $2,880 | $2,160 | $720 |
Fees are separate. Documentation, title and registration charges are added to the price, and many buyers finance them. Financing tax and fees means you pay interest on them, so paying them at signing is cheaper if you have the cash. Untick Roll the tax and fees into the loan to compare. The car loan calculator with tax shows the cash due at signing so nothing surprises you at the dealership.
Effect of loan term length: 36 to 84 months
A longer term lowers the monthly payment but adds interest, and the car loses value while you still owe on it. The FTC notes that lower payments often come with longer terms and higher rates that raise the overall cost. This table keeps the amount financed at $31,740.00 and the APR at 7%, so you can see only the term at work.
| Term | Monthly payment | Total interest | Total of payments |
|---|---|---|---|
| 36 months | $980.04 | $3,541.41 | $35,281.41 |
| 48 months | $760.05 | $4,742.58 | $36,482.58 |
| 60 months | $628.49 | $5,969.40 | $37,709.40 |
| 72 months | $541.14 | $7,221.75 | $38,961.75 |
| 84 months | $479.04 | $8,499.50 | $40,239.50 |
Going from 60 to 84 months lowers the payment by $149.45 but adds $2,530.10 of interest. Lenders also charge higher rates on longer loans, which this table ignores, so the real gap is often wider.
Auto loan calculator: what a different APR does
Your APR depends on your credit, the term, the lender and whether the car is new or used. The Federal Reserve publishes commercial bank rates in its G.19 consumer credit release; recent readings for 60-month new car loans have been around 7%, which is why the car loan calculator opens at 7%. Use your own quote. This auto loan calculator view shows what the rate does to the same loan:
| APR | Monthly payment | Total interest | Price + tax + fees + interest |
|---|---|---|---|
| 0% | $529.00 | $0 | $34,740 |
| 3% | $570.33 | $2,480 | $37,220 |
| 5% | $598.97 | $4,198 | $38,938 |
| 7% | $628.49 | $5,969 | $40,709 |
| 9% | $658.87 | $7,792 | $42,532 |
| 12% | $706.04 | $10,622 | $45,362 |
| 15% | $755.09 | $13,566 | $48,306 |
Car loan calculator extra payment: pay it off sooner
Extra money goes to principal and cuts the interest on every later month, as long as your lender has no prepayment penalty and applies it to principal. On the example loan:
| Extra a month | You pay | Paid off in | Time saved | Total interest | Interest saved |
|---|---|---|---|---|---|
| None | $628.49 | 5 years | – | $5,969 | – |
| $25 | $653.49 | 4 years 10 months | 2 months | $5,689 | $280 |
| $50 | $678.49 | 4 years 7 months | 5 months | $5,434 | $536 |
| $100 | $728.49 | 4 years 3 months | 9 months | $4,988 | $981 |
| $200 | $828.49 | 3 years 8 months | 1 year 4 months | $4,288 | $1,681 |
How much car can I afford? The 20/4/10 guide
A common rule of thumb for buying a car is 20/4/10: put 20% down, finance for no more than 4 years and keep the total car cost (payment, insurance and fuel) near 10% of your gross income. Use it as a first filter, then test your own numbers in the car loan calculator. The table shows the car price that 10% of gross monthly income supports as a payment, at 7% over 48 months with 20% down and no tax or fees:
| Gross income a year | Payment budget at 10% | Loan it supports | Car price with 20% down |
|---|---|---|---|
| $36,000 | $300 | $12,528 | $15,660 |
| $48,000 | $400 | $16,704 | $20,880 |
| $60,000 | $500 | $20,880 | $26,100 |
| $84,000 | $700 | $29,232 | $36,540 |
| $120,000 | $1,000 | $41,760 | $52,200 |
Car loans in the US, Canada and Australia
| Country | What to know |
|---|---|
| United States | The loan is usually from a bank, credit union or the dealer. State sales tax and fees vary, and many states tax the price minus the trade-in. |
| Canada | Expect GST or HST plus provincial tax on the vehicle, and fees such as registration. Rates are quoted as an annual rate and payments are commonly monthly, bi-weekly or weekly. Use the currency box for C$. |
| Australia | Car loans can be secured or unsecured, and some include a balloon payment, which lowers repayments but leaves a lump sum to pay. Compare the comparison rate, not only the interest rate. |
| United Kingdom | Hire purchase and personal contract purchase (PCP) are common alternatives to a loan; a PCP includes a final balloon payment |
Moneysmart explains that a balloon payment is repaid with interest, so the total cost is generally higher; see its car loans guide. This car loan calculator assumes equal payments with no balloon.
New vs used: how the car loan calculator changes the picture
Used cars cost less, but lenders often charge a higher APR and allow shorter terms. Run both in the car loan calculator before you decide. This comparison uses a down payment of $3,000, 7% tax and $500 in fees on each car.
| Car | Price | APR and term | Monthly payment | Total interest |
|---|---|---|---|---|
| New | $32,000 | 7%, 60 months | $628.49 | $5,969 |
| Used | $21,000 | 10%, 48 months | $506.49 | $4,342 |
| Used at the new-car rate | $21,000 | 7%, 48 months | $478.21 | $2,984 |
The used car is cheaper every month and in total, even at a higher rate. The gap between its rate and a lower quote matters too: moving from 10% to 7% saves $1,358 on that used loan.
What a car really costs each month
The loan payment is only part of the cost. Insurance, fuel, maintenance and registration come on top, and they are not in the loan. This example budget shows how the payment on the $31,740 loan compares with the other costs; the other figures are placeholders you should replace with your own quotes.
| Monthly cost | Example amount |
|---|---|
| Loan payment (60 months at 7%) | $628.49 |
| Insurance (example) | $150.00 |
| Fuel (example) | $160.00 |
| Maintenance and tires (example) | $75.00 |
| Total | $1,013.49 |
The 20/4/10 guide above counts all of these costs against 10% of gross income, which is why it is stricter than a payment-only rule.
Car loan calculator for refinance
To see whether refinancing pays, enter the remaining balance as the vehicle price with no tax, fees or down payment, then the new APR and the number of months left. Compare the total interest and the monthly payment with your current loan, and subtract any fee for the new loan. A balance of $20,000 with 48 months left costs $497.70 a month at 9% and $469.70 at 6%, which saves $1,344 in interest over the rest of the loan.
Common car loan mistakes and tips
- Focusing on the monthly payment. A low payment can hide a long term and a large total cost.
- Not getting the out-the-door price. Ask for the price with tax and fees in writing before you discuss financing.
- Ignoring negative equity. Rolling it into the new loan raises the amount financed and the interest.
- Skipping pre-approval. A quote from a bank or credit union gives you a rate to compare with the dealer’s.
- Forgetting insurance and running costs. They are not part of the loan payment.
This car loan calculator gives estimates for planning, not financial advice or a loan offer. Confirm every figure on your buyer’s order.
Questions people ask about car payments
How much is a $30,000 car payment per month?
A $30,000 loan at 7% over 60 months costs about $594.04 a month, or $511.47 over 72 months, before tax and fees. Add them in the car loan calculator for the real figure.
What is the monthly payment on a $20,000 car loan?
At 7% over 60 months, a $20,000 loan costs $396.02 a month. Over 48 months it is $478.92.
Frequently asked questions
10 quick answers
How do I calculate a car loan payment?
Find the amount financed (price + tax + fees − down payment − trade-in equity), then use Payment = L × r ÷ (1 − (1 + r)^−n) with r the APR ÷ 12. For $31,740 at 7% over 60 months it is $628.49.
How does a trade-in affect my car loan?
Positive equity reduces the amount financed like a down payment, and in many places it also lowers the sales tax. Negative equity is added to the new loan.
Should I roll tax and fees into the loan?
It lowers the cash due at signing but you pay interest on those costs. Paying them up front is cheaper if you can afford it.
What loan term is best for a car?
The shortest term whose payment you can afford. A 60-month loan on $31,740 at 7% costs $5,969 in interest, while an 84-month loan costs $8,500.
How much car can I afford?
Many buyers aim for a payment near 10% of gross income or less, 20% down and a term of 4 years or less. Use the car price I can afford mode of the car loan calculator with your own payment budget.
Is 72 months too long for a car loan?
It is common, but it adds interest and can leave you owing more than the car is worth. Compare the total cost with a shorter term in the car loan calculator table.
How do extra payments help on a car loan?
They reduce the principal faster. $100 extra a month on the example loan saves $981 in interest and ends the loan 9 months sooner.
Does the car loan calculator include sales tax?
Yes. Enter your tax rate; with a trade-in, choose whether your state taxes the price minus the trade-in or the full price.
Can I use it for a used car?
Yes. The math is the same; only the price and APR change. Used car loans often have higher rates and shorter maximum terms, so enter the quoted APR in the car loan calculator.
Is this a loan offer?
No. It estimates the payment. Your lender and dealer confirm the final price, rate and fees.
Related calculators
- Loan calculator for personal and student loans, with APR
- Mortgage calculator with taxes and extra payments
- MPG calculator for fuel costs
- Sales tax and discount calculator
- Percentage calculator
- All calculators and money worksheets
Sources and further reading
- Federal Trade Commission: financing or leasing a car
- Moneysmart (Australian Government): car loans
- Federal Reserve: Consumer Credit (G.19)
- Wikipedia: car finance
Last updated: October 2026.