Skip to content
DayUtils

Auto Loan Calculator – Monthly Car Payment with Tax, Fees and Trade-in

Work out your monthly car payment with sales tax, dealer and registration fees, your down payment and trade-in. Compare terms from 36 to 84 months and see the total interest and the full cost of the car before you sign.

Loading tool…

How to use the auto loan calculator

  1. Enter the car price agreed with the dealer.
  2. Add your down payment and the trade-in value of your current car.
  3. Enter your sales tax rate and the title, registration and dealer fees.
  4. Enter the APR and choose a loan term.
  5. Choose whether to add tax and fees to the loan or pay them upfront.

You’ll see the monthly payment, the amount financed, the total interest and the total cost of the car including everything you pay upfront.

How the car payment is worked out

Amount financed = Price − Down payment − Trade-in + Tax + Fees
Payment = A × r × (1 + r)^n ÷ ((1 + r)^n − 1)

Sales tax is applied to the price after the trade-in credit, which is how most US states work.

Worked example

A $35,000 car, $5,000 down, 6% sales tax, $600 fees, 7% APR:

  • Sales tax = 6% × $35,000 = $2,100
  • Amount financed = $35,000 − $5,000 + $2,100 + $600 = $32,700
  • 60 months: payment ≈ $647.50, total interest ≈ $6,150
  • 72 months: payment ≈ $557.50, total interest ≈ $7,440

Stretching the loan one more year saves $90 a month but costs about $1,290 more in interest.

Tips for a cheaper car loan

  • Get pre-approved by a bank or credit union before you visit the dealer, so you can compare their offer.
  • Negotiate the price first, then talk about financing.
  • Watch the APR, not just the payment. A low payment can hide a long term or extras added to the loan.
  • Say no to add-ons you don’t want, such as paint protection or extended warranties rolled into the loan.
  • Make a bigger down payment to avoid owing more than the car is worth.

New or used, dealer or bank

Rates differ a lot by lender and by the car. New cars often come with low promotional rates from the manufacturer’s finance arm, sometimes in exchange for giving up a cash rebate — compare both offers in the calculator. Used-car loans usually carry higher rates. Credit unions and online lenders are worth checking alongside the dealer.

Total cost of owning a car

The payment is only part of the cost. Budget for insurance, fuel, maintenance, tyres, parking and registration renewals. For the tax on your purchase see the sales tax calculator; and to see how fees change the real rate, try the APR calculator. Results are estimates — see our disclaimer.

Frequently asked questions

How do I calculate a car payment?

Work out the amount financed — price minus down payment and trade-in, plus any tax and fees you add to the loan — then use the loan formula: payment = A × r × (1 + r)^n ÷ ((1 + r)^n − 1), with r = APR ÷ 12 ÷ 100 and n = months.

What is the payment on a $35,000 car?

With $5,000 down, 6% sales tax ($2,100) and $600 of fees rolled into the loan, you finance $32,700. At 7% APR over 60 months the payment is about $647.50 and total interest about $6,150.

Is a 72 or 84-month car loan a good idea?

It lowers the payment but costs more interest, and cars lose value quickly, so you can owe more than the car is worth for years. On the example above, 72 months cuts the payment to about $557.50 but raises interest to about $7,440.

Does a trade-in reduce sales tax?

In most US states, yes — sales tax is charged on the price minus the trade-in value. A few states tax the full price. The calculator applies the trade-in credit; check your state’s rule.

Should I roll taxes and fees into the loan?

Paying them upfront means you borrow less and pay less interest. Rolling them in keeps cash in your pocket but you pay interest on them. Untick the option to compare.

How much car can I afford?

A common guideline is to keep the car payment under about 10% to 15% of your take-home pay and total car costs — payment, insurance, fuel and maintenance — under about 20%.

Related tools

Last updated: