Auto Loan Calculator
Estimate your monthly car payment including sales tax, down payment and trade-in.
When to use this calculator
Use this calculator before you step into a dealership. Knowing what a vehicle price, down payment and loan term mean for your monthly payment helps you set a budget and compare financing offers from a bank, a credit union and the dealer.
How this calculator works
The loan amount is the price plus sales tax, minus your down payment and trade-in. The monthly payment uses the standard loan formula with your rate and term.
Step-by-step example
Using these inputs: Vehicle price: $35,000; Down payment: $5,000; Trade-in: $0; Interest rate: 7%; Sales tax: 6%; Term: 60 months.
A $35,000 car with 6% sales tax, $5,000 down and a 7% rate over 60 months means borrowing $32,100. The payment is about $636 a month and the interest adds up to $6,037.
Tips for a better estimate
- Look at total interest, not only the monthly payment. A longer term lowers the payment but costs more overall.
- Get pre-approved by a bank or credit union so you have a rate to compare with the dealer's offer.
- Remember insurance, fuel, registration and maintenance. They are not part of the loan payment.
FAQ
Is a longer loan better?
A longer term lowers the monthly payment but increases the total interest you pay.
Is sales tax included?
Yes, you can set your local rate above. Fees and registration are not included.
What is a good loan term for a car?
Shorter terms such as 36 to 60 months cost less interest. Very long loans can leave you owing more than the car is worth for a long time.
Does a trade-in lower my payment?
Yes. The trade-in value reduces the amount you borrow, which lowers the payment and the interest.
Should I put more money down?
A larger down payment reduces the loan, the interest and the risk of owing more than the car is worth, but keep enough cash for emergencies.
Rates and limits last updated: October 2026. This is an estimate for general information only, not financial, tax or legal advice.