Auto Loan Calculator

See your true monthly car payment — including sales tax, trade-in credit, and down payment, plus the total interest you'll pay.

$
$
$
Reduces both the amount financed and, in most states, the taxable amount.
%
Your state/local vehicle sales tax rate.
%
Estimated monthly payment
$0.00
Sales tax
$0
Down + trade-in
$0
Amount financed
$0
Total interest
$0
Total cost of vehicle
$0

Estimate only — not a loan offer. Sales tax rules vary by state.

How this auto loan calculator works

The sticker price is only part of what you actually finance. This calculator shows your true monthly car payment by accounting for the things dealerships often gloss over: sales tax, your trade-in credit, and your down payment. The result is a realistic payment and — just as important — the total interest you'll pay over the life of the loan.

Here's the math. In most states, sales tax is charged on the vehicle price minus your trade-in value, so trading in a car lowers your tax bill. The amount you finance is the vehicle price plus that sales tax, minus your down payment and trade-in. That balance is then amortized over your loan term at your APR to produce a fixed monthly payment.

Key terms explained

Amount financed. The loan balance after your down payment and trade-in are applied and sales tax is added. This is what interest is charged on.

APR. The annual percentage rate — the yearly cost of borrowing. Even a one-point difference in APR can mean hundreds or thousands of dollars over a multi-year loan.

Trade-in credit. The value the dealer gives you for your current vehicle. Beyond lowering the loan, in most states it also reduces the taxable amount — a real and often-overlooked saving.

Loan term. How long you take to repay, in months. Longer terms shrink the monthly payment but raise total interest, and they keep you "underwater" (owing more than the car is worth) longer.

2026 car-buying reference

Auto loan APRs vary widely by credit score and whether the car is new or used. Through 2026, well-qualified buyers have generally seen new-car APRs in the mid-single digits, with used-car rates running higher. Stretching to an 84-month loan to hit a lower monthly payment is increasingly common, but it sharply increases total interest — switch the term in the calculator to see the difference on your numbers.

Before you sign, make sure the payment fits your budget. Run your real take-home pay first, and keep total transportation costs at a sustainable share of your income. Sales tax treatment of trade-ins varies by state, so confirm your local rules with the dealer or your state DMV.

Frequently asked questions

Does a trade-in reduce sales tax?
In most states, yes. Sales tax is charged on the vehicle price minus your trade-in value, so a trade-in lowers both the amount you finance and the tax you pay. A few states tax the full price regardless of trade-in.
How is my car payment calculated?
The amount financed is the vehicle price plus sales tax, minus your down payment and trade-in. That balance is amortized over your loan term at your APR to produce a fixed monthly payment.
What is APR on a car loan?
APR is the annual percentage rate — the yearly cost of borrowing, including interest. A lower APR means a lower monthly payment and less total interest over the life of the loan.
Is a longer loan term cheaper?
A longer term lowers your monthly payment but increases total interest paid. A 72-month loan costs less per month than a 48-month loan but more overall. Try different terms to see the trade-off.
Should I make a down payment on a car?
A larger down payment reduces the amount financed, lowering your monthly payment and total interest. It also reduces the risk of owing more than the car is worth early in the loan.

Related calculators & guides

Paycheck Calculator Check whether this car payment fits your real take-home pay. Mortgage Calculator Balance a car payment against your full monthly housing cost. Guide: How Much Car Can I Afford? The 20/4/10 rule and the costs beyond the payment.