How to use the Auto Loan Calculator
The auto loan calculator works out the monthly payment for a car loan after your down payment, trade-in and sales tax.
Open the Auto Loan Calculator →
What you need to enter
- Vehicle price ($)
- Down payment ($)
- Trade-in value ($)
- Sales tax (%)
- Interest rate (%)
- Loan term (months)
The formula
The amount financed = price × (1 + sales tax) − down payment − trade-in. The payment uses the standard loan formula: P × r ÷ (1 − (1 + r)^−n) with a monthly rate r and n months.
Worked example
Using the default values in the calculator:
- Vehicle price ($): 30000
- Down payment ($): 3000
- Trade-in value ($): 0
- Sales tax (%): 6
- Interest rate (%): 6
- Loan term (months): 60
| Monthly payment | $556.78 |
| Amount financed | $28,800.00 |
| Total of payments | $33,407.08 |
| Total interest | $4,607.08 |
Tips for better results
- Shorter terms cost less interest overall even though the monthly payment is higher.
- Check the total of payments, not just the monthly figure, before agreeing to 72 or 84 months.
Common mistakes to avoid
- Ignoring sales tax and fees that are added to the loan.
- Rolling negative equity from an old loan into the new one without noticing.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.