Car Loan Calculator — Monthly Payment & Total Cost
Payment, interest and the real total cost — with trade-in and sales tax done right.
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| Amount financed | — |
| Sales tax included | — |
| Total interest | — |
| Total of payments | — |
| Total vehicle cost (incl. down & trade-in) | — |
Want the payment-by-payment breakdown? Put the amount financed into the loan calculator for a full amortisation schedule.
Work out the monthly payment on a car loan — and the numbers dealers prefer you not to dwell on: total interest over the term, and the true all-in cost of the car once the down payment and trade-in are counted.
Trade-in and sales tax interact the way they do at a real dealership: in most places the trade-in's value comes off the price before tax is charged, which makes a trade-in worth more than its sticker value.
How to use Car Loan Calculator
- Enter the vehicle price — the negotiated price, not the MSRP.
- Add your down payment and trade-in, and your local sales tax rate if you want the tax rolled in.
- Set the APR and term. The rate on the loan offer, and how many months.
- Compare terms. Flick between 48, 60 and 72 months and watch what happens to total interest.
The monthly payment is the trap
Dealers sell payments, not prices, because stretching the term makes any car "affordable". A $28,000 loan at 7% costs $554/month over 60 months but only $427 over 84 — and the longer loan quietly adds about $2,300 of extra interest. Judge a deal by total cost, which this calculator puts one line under the payment, and treat a term stretch as the price increase it is.
Why the trade-in beats selling private — sometimes
In most US states (and several other places) sales tax applies to the price minus the trade-in. Trade in a $10,000 car where tax is 8% and you save $800 of tax on top of the car's value — so a private sale has to beat the trade-in offer by more than it looks. This calculator applies that rule; if your state taxes the full price (California, for one), leave the trade-in at zero and subtract it from the price yourself.
Underwater on the old loan?
If you owe more on the current car than the trade-in is worth, the shortfall gets rolled into the new loan — you start the new car owing more than it's worth, which is how people end up trapped in a cycle of negative equity. If that's the situation, the honest move is usually to keep the current car longer, not to finance the gap at 7%.
Down payment: the 20% guideline
New cars lose value fastest in their first two years. A down payment around 20% keeps the loan balance under the car's falling value, so an insurance write-off or forced sale doesn't leave you paying for a car you no longer have. For the payment-by-payment breakdown, feed the amount financed into the loan calculator's amortisation schedule.
Frequently asked questions
What credit terms count as a good car loan rate?
It moves with central-bank rates and your credit score, so check current averages rather than folklore. The reliable rules: get pre-approved by a bank or credit union before visiting the dealer (it's your negotiating baseline), and compare offers by total cost over the same term — a low rate on a longer term can still cost more.
Is 72 or 84 months a bad idea?
Usually. The longer term buys a lower payment with years of extra interest, and it keeps you owing more than the car is worth deep into the loan. The classic guideline is 20% down, a term of at most 48–60 months, and total car costs under about 10% of gross income — if a car only fits at 84 months, it's the car that doesn't fit.
How does the trade-in affect sales tax?
In most US states, tax is charged on the price minus the trade-in — trading in a $10,000 car at 8% tax saves $800 beyond the car's value. A handful of states (California among them) tax the full price. This calculator applies the deduct-first rule; if your state doesn't, enter the trade-in as extra down payment instead.
Should I take the dealer's 0% finance or the cash rebate?
Compute both totals: price minus rebate financed at your bank's rate, versus full price at 0%. With this calculator, run each scenario and compare total cost — with large rebates and moderate rates, the rebate often wins, which surprises people.
What if I still owe money on my trade-in?
The payoff comes out of the trade-in value. If you owe more than the car is worth, the difference gets added to the new loan — starting the new car in negative equity. Financially, the strong move is usually to keep the current car until the gap closes.