Car Loan Calculator - Auto Loan Payment Estimator
Calculate your monthly car loan payment from vehicle price, down payment, trade-in value, sales tax rate, loan term, and interest rate.
$
$
$
%
months
%
Monthly Payment
$550
Sales Tax
$2,100
Loan Amount
$28,100
Total Interest
$4,889
Total Cost of Loan
$32,989
How the Car Loan Calculator Works
Enter the vehicle's price, your down payment, any trade-in value, your local sales tax rate, the loan term in months, and the annual interest rate. The calculator first works out the actual loan amount you'll finance, then applies the standard amortization formula to find your monthly payment.
Sales Tax = Taxable Amount × Tax Rate
Loan Amount = Price − Down Payment − Trade-In + Sales Tax
Payment = [P × r(1+r)^n] / [(1+r)^n − 1]
Where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the loan term in months. Trade-in value reduces both the amount financed and, in most states, the taxable amount.
Example
A $32,000 car with a $4,000 down payment and a $2,000 trade-in, at 7% sales tax, financed over 60 months at 6.5% APR: the taxable amount is $30,000, sales tax is $2,100, and the loan amount is $32,000 − $4,000 − $2,000 + $2,100 = $28,100. That works out to a monthly payment of roughly $549/month, with about $4,840 in total interest over the loan.
Common Use Cases
- Budgeting a monthly car payment before visiting a dealership.
- Comparing how a larger down payment or trade-in reduces total interest paid.
- Estimating the true out-the-door loan amount once sales tax is factored in.
FAQs
- How is this different from the generic EMI Calculator? The EMI Calculator only takes a principal, rate, and tenure. This Car Loan Calculator is auto-specific — it also accounts for down payment, trade-in value, and sales tax, all of which change the actual amount you finance versus the vehicle's sticker price.
- Does trade-in value always reduce sales tax? In most US states, yes — sales tax is charged on the price minus the trade-in value. A few states tax the full purchase price regardless of trade-in, so check your local rules for an exact figure.
- Why is my loan amount higher than the price minus down payment? Because sales tax is added into the amount financed unless you pay it separately in cash. If you plan to pay tax and fees out of pocket, set the down payment high enough to cover them.