Auto Loan Calculator

Estimate a car payment from the vehicle price, down payment, sales tax rate, APR, and loan term. The calculator shows the monthly payment, sales tax, total interest, total payments, total cost, and number of months so you can compare financing scenarios before visiting a dealer or lender.

How to use this calculator

Enter the vehicle price, down payment, sales tax rate, interest rate, and loan term in years. Sales tax is calculated from the vehicle price, then the down payment is subtracted from the taxed price to find the amount financed. If you are comparing affordability, pair the result with the debt to income calculator and a broader budget calculator.

Formula

The monthly payment uses the standard amortized loan formula:

$payment = principal \times r \times (1 + r)^n \div ((1 + r)^n - 1)$

Here r is the monthly interest rate and n is the total number of monthly payments. With zero interest, the calculator divides principal by months.

Example

For a 30,000 dollar vehicle, 6.5 percent sales tax, 5,000 dollars down, 4.5 percent APR, and a five year term, the financed principal is 26,950 dollars. The estimated payment is about 502 dollars per month, with roughly 3,164 dollars of interest over 60 payments.

Interpreting the result

A longer term lowers the payment but usually increases total interest. A larger down payment does the opposite. For general loan comparisons, use the loan calculator, and remember that registration, insurance, maintenance, and dealer fees may not be included here.