Car Loan Calculator
Get an accurate monthly payment estimate for your next vehicle purchase. This advanced tool accounts for all the variables like sales tax and trade-in value that other simple calculators miss.
How is a car loan payment calculated?
Monthly payments are calculated based on the total loan amount (Price - Down Payment - Trade-in + Fees/Tax), the interest rate, and the loan term. The formula used is the standard amortization formula for fixed-rate loans.
How does a trade-in affect my loan?
A trade-in reduces the amount you need to borrow. If you owe less on your trade-in than its value, that "positive equity" acts like a down payment. If you owe more (negative equity), that amount is usually added to your new loan.
Should I include sales tax in the loan?
Most people roll their sales tax into the car loan. This calculator allows you to enter a sales tax percentage, which is then added to the purchase price before the loan amount is determined.
What is a typical car loan term?
Common loan terms are 36, 48, 60, or 72 months. While longer terms result in lower monthly payments, you will end up paying significantly more in total interest over the life of the loan.