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Car Loan Calculator
Estimate your monthly car payment and total interest — and see how the loan term changes what the car really costs.
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How the Car Loan Calculator works
A car loan feels simple: pick a monthly payment you can live with. The trouble is that the same payment can hide very different total costs depending on the interest rate and the term. This calculator shows the full picture — the monthly payment, the total interest you will pay, the total cost of the vehicle including your down payment and trade-in, and how large the payment is compared with your income.
Start with the price and your down payment and trade-in, add your local sales tax and the APR you were quoted, and choose a term. The comparison table underneath recalculates every common term from 36 to 84 months so you can see how stretching the loan lowers the monthly bill but increases interest. For example, on the same loan an extra two years can add thousands of dollars in interest.
Use it before you visit a dealership. Getting pre-approved by a bank or credit union gives you a real APR to enter and a point of comparison against dealer financing. A larger down payment reduces the amount financed and helps protect against owing more than the car is worth if you need to sell it early.
Finally, remember that the payment is only part of owning a car. Insurance, fuel, maintenance, registration and parking can add hundreds per month. Read our guide on how much car you can afford, then use the Budget Calculator to see whether the total fits your plan.
Frequently asked questions
How is a car loan payment calculated?
The calculator uses the standard amortizing-loan formula: payment = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the amount financed, r is the monthly interest rate (APR ÷ 12) and n is the number of months. If the rate is 0%, the payment is simply the amount financed divided by the months.
Is sales tax included in the amount financed?
In this calculator, yes: sales tax is added to the price and financed after subtracting your down payment and trade-in. In real life, tax rules differ by state — some tax only the difference after a trade-in — and registration or dealer fees may also apply, so treat the result as an estimate.
What loan term is best?
Shorter terms have higher payments but far less interest. Many financial educators suggest staying near 48 to 60 months. Terms of 72 or 84 months can make an expensive car look affordable while leaving you paying interest for years and risk owing more than the car is worth.
How much of my income should go to a car?
A frequently cited guideline is to keep total transportation costs — payment, insurance, fuel and maintenance — under about 10% to 15% of gross income. The "share of income" line shows the loan payment alone, so add your other car costs to compare.