About the Car Loan Calculator
A car loan calculator works out the monthly payment on an auto loan. It starts from the vehicle price, subtracts your trade-in, adds sales tax, subtracts your down payment to get the financed amount, then applies the interest rate over the loan term to give the monthly payment, total interest and total cost.
How Car Loan Calculator works
Loan = (price − trade-in) × (1 + sales tax) − down payment
The monthly payment then uses the amortization formula M = L · i ÷ (1 − (1+i)−n), with i = monthly rate and n = months.
Example: ,000 car, ,000 down, 7% tax, 6% for 60 months → loan ≈ ,100, payment ≈ 4/month.
Common uses
- Estimate a monthly car payment before you buy
- See how down payment and trade-in lower the payment
- Include sales tax in the financed amount
- Compare loan terms (36 vs 60 vs 72 months)
Frequently asked questions
How is sales tax handled?
Tax is applied to the price minus your trade-in, then added to the amount financed (typical in most US states).
Should I choose a longer term?
A longer term lowers the monthly payment but increases total interest. The calculator shows both so you can compare.
Does it include insurance or fees?
No — it covers the loan principal, interest and sales tax only.