Car Loan Calculator
Calculate auto loan payments including sales tax, down payment and trade-in value.
60 months (5 years)
Cost Breakdown
Balance & Interest Over Time
Enter an extra amount to see how much interest you'd save.
Results are estimates for informational purposes only. Consult a financial advisor for personalised advice.
How to use
- 1
Pick the loan type that matches your situation
- 2
Enter the loan amount, interest rate and term
- 3
See your monthly payment, total interest and full schedule instantly
Free Car Loan Calculator โ Monthly Payment with Tax & Trade-In
Calculate your car loan monthly payment including sales tax, down payment and trade-in value. See total interest and full amortization. Free, instant, no signup.
A car loan calculator helps you estimate your actual monthly payment before visiting a dealership. Unlike a simple loan calculator, a car loan must account for sales tax on the vehicle price, your down payment, and the trade-in value of your current vehicle โ all of which reduce (or increase) the amount you actually need to finance.
Dealerships often focus the conversation on the monthly payment rather than the total cost, which can obscure how much you're actually paying. This calculator shows both: the monthly payment AND the total amount paid over the life of the loan, including all interest. A $350/month payment sounds affordable, but over 72 months it may mean paying $5,000โ$8,000 in interest alone.
When shopping for a car loan, compare offers from your bank or credit union before going to the dealership โ dealer financing is often more expensive. A difference of even 1โ2% in interest rate on a $25,000 loan over 5 years can save over $1,300. Use this calculator to compare offers side by side.
Frequently Asked Questions
How is a car loan calculated?
The financed amount = (vehicle price + sales tax) โ down payment โ trade-in value. The monthly payment is then calculated from this financed amount, the interest rate, and the loan term using the standard PMT formula.
What is a typical car loan interest rate?
Auto loan rates vary by credit score and lender. For excellent credit (750+), rates of 4โ6% are common. For good credit (700โ749), expect 6โ9%. For fair credit (650โ699), 10โ15%. For poor credit, rates can exceed 20%.
How long should a car loan be?
48โ60 months is common. Loans of 72 or 84 months lower the monthly payment but increase total interest paid significantly โ and you may owe more than the car is worth (being 'underwater') for most of the loan.
What is trade-in value?
The amount a dealership offers for your current car in exchange for a reduction in the price of your new car. Trade-in value reduces the amount you need to finance.
How does sales tax affect my car loan?
In most regions, sales tax is applied to the vehicle purchase price before calculating the financed amount. This means you typically finance the tax amount along with the vehicle price, increasing both the loan amount and the total interest paid.
Should I put money down on a car?
Yes, if possible. A larger down payment means you borrow less, pay less interest, and are less likely to go 'underwater' on the loan. A down payment of 10โ20% of the vehicle price is generally recommended.
Can I pay off a car loan early?
Most auto loans allow early payoff without penalty. Use the 'Extra Payment' feature to see how much interest you save by paying extra each month or making a lump-sum payment.
Is the calculator free to use?
Completely free. No account, no signup, no data sent anywhere. All calculations run in your browser and inputs are saved locally for your convenience.
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