Estimate your monthly auto loan payment — including sales tax, fees, trade-in, and down payment — and see exactly how much interest the loan adds.
This is an estimate. Sales tax rules, title, registration, and dealer documentation fees vary by state and dealer, and your actual APR depends on your credit. Results exclude insurance, maintenance, and fuel. This tool is for educational purposes only and is not financial advice.
The calculator first works out how much you actually need to borrow. In most states, sales tax is charged on the vehicle price minus your trade-in value, so a trade-in lowers both your tax and your loan. Your down payment and trade-in are then subtracted, and any title, registration, and documentation fees are added in. The result is your amount financed.
That financed amount is then spread across your loan term using the standard fixed-payment loan formula, the same math a lender uses. Early in the loan, more of each payment goes to interest; later, more goes to principal. The schedule below shows that shift year by year.
Your monthly payment here is principal and interest only. Taxes and fees are rolled into the amount financed, so you pay them off over time as part of the loan rather than as a separate bill.
It does not include the other costs of owning a car: insurance, fuel, maintenance, repairs, and annual registration renewals. Those can easily add a few hundred dollars a month, so budget for them on top of the payment shown.
Most states give you a trade-in tax credit: you only pay sales tax on the difference between the car's price and your trade-in. On a $35,000 car with a $3,000 trade-in and a 7% rate, that credit saves you about $210 in tax. A handful of states tax the full purchase price regardless of trade-in, and a few have no statewide sales tax at all.
Because the rules and rates differ by state — and sometimes by county or city — treat the tax figure as an estimate and confirm your exact rate with your state's DMV or department of revenue before signing.
Four levers move the payment. A larger down payment or trade-in reduces the amount financed directly. A lower APR — which usually comes from a stronger credit score or simply shopping more lenders — cuts the interest portion. A shorter term raises the payment but slashes total interest. And refinancing an existing loan can lower the rate after the fact.
Dealer financing is convenient but not always the cheapest. Getting a pre-approval from a bank, credit union, or online lender before you shop gives you a rate to negotiate against, which is often where the real savings are.
Stretching the term is the most common way buyers force a payment down — but it is expensive. On that same $35,000 example (about $29,740 financed at 6.5%), a 60-month loan costs roughly $582 a month and about $5,174 in total interest. Extend it to 72 months and the payment drops to about $500, but total interest climbs to roughly $6,255 — paying around $1,080 more to save about $82 a month.
Longer terms also raise the risk of being "upside down" — owing more than the car is worth — because cars depreciate faster than a long loan pays down. As a rule of thumb, choose the shortest term whose payment still fits comfortably in your budget.
It uses the amount financed, your APR, and the number of months. Each month, interest is charged on the remaining balance and the rest of your fixed payment reduces the principal. The calculator solves for the fixed payment that pays the loan to zero over the term.
Yes. Enter your sales tax rate and any title, registration, and documentation fees, and they're added to the amount financed. The "out-the-door price" shown is the vehicle price plus tax and fees, before your down payment and trade-in are applied.
A longer term lowers the monthly payment but increases the total interest you pay and raises the chance of owing more than the car is worth. Pick the shortest term you can comfortably afford rather than the longest term available.
Yes. A larger down payment or trade-in reduces the amount you finance, which lowers both the monthly payment and the total interest. It can also help you qualify for a better rate and avoid being upside down early in the loan.
Paying cash avoids all interest, which is a guaranteed saving. Financing can make sense if you secure a very low promotional APR and would rather keep cash on hand, but compare the loan's rate to what that money could safely earn elsewhere.