How the Car & Auto Loan calculator works
Amount financed
Financed = Price + sales tax + fees − down payment − (trade-in value − amount owed on it)
- Sales tax
- tax rate × (price − trade-in) in most states, or × price where no trade-in credit applies
Monthly payment
M = Financed × r(1 + r)n ÷ ((1 + r)n − 1)
- r
- APR ÷ 12
- n
- loan term in months
Worked example
A $35,000 car bought with $5,000 down carries 6% sales tax ($2,100.00) and $1,200 in title, registration and dealer fees. With the tax and fees rolled into the loan, the amount financed is $33,300.00.
At 7.5% APR for 60 months the payment is $667.26 a month, and the loan costs $6,735.82 in interest. The donut chart shows how the total splits between the car, interest, tax and fees.
Auto loan calculator with trade-in and negative equity
Open Trade-in, tax and fees to add your current car. Enter its trade-in value and the payoff amount on its loan (call your lender for the exact payoff; it can differ from your statement balance). If the car is worth more than you owe, the equity works like extra down payment. If you owe more, the shortfall is added to the new loan, and you start out owing more than the new car is worth. Federal regulators warn buyers to check how a dealer handles negative equity before signing.
How much car can I afford?
At a 7.5% APR with no money down, a $350 monthly payment buys a car priced at about $17,467 over 60 months, or $20,243 over 72 months, before sales tax and fees. Longer terms raise the price you can afford but cost more interest.
| Monthly payment | 48 months | 60 months | 72 months |
|---|---|---|---|
| $300 | $12,408 | $14,972 | $17,351 |
| $350 | $14,475 | $17,467 | $20,243 |
| $400 | $16,543 | $19,962 | $23,135 |
| $500 | $20,679 | $24,953 | $28,918 |
| $600 | $24,815 | $29,943 | $34,702 |
Worked out with this calculator at 7.5%, about the Federal Reserve’s average for 60-month new-car loans in the third quarter of 2026, with no down payment, trade-in, sales tax or fees. Sales tax and fees added to the loan lower these prices; a down payment or a trade-in raises them by about the same amount.
Switch the calculator to “Car price I can afford” and enter the monthly payment that fits your budget. It works backward through the rate, the term, your down payment, any trade-in, sales tax and fees to the highest sticker price that keeps the payment at that number. A common guideline is to keep all car costs, including insurance and fuel, near 10% to 15% of take-home pay.
How long should a car loan be?
Use the car loan calculator to compare terms side by side: switch between 48, 60 and 72 months and watch the payment fall while the total interest climbs.
Shorter loans cost less. On the same car and rate, moving from 60 to 84 months lowers the payment but adds two more years of interest, and lenders often charge a higher APR for longer terms. Use the term menu to compare, and look at the Total interest line rather than the payment alone.
Sales tax and fees
Sales tax on cars is set by states and sometimes counties and cities, so use the rate where you will register the car. Most states give a trade-in credit, taxing only the difference; a few don’t. Dealer documentation fees also vary widely, so ask for an out-the-door price that lists every fee.
Related calculators
To test whether the payment fits a mortgage application, use the debt-to-income ratio calculator. For a full payment table on any loan, use the loan calculator, and to check a dealer’s quoted payment against its stated rate, try the interest rate calculator.
Assumptions and limits
- A simple-interest auto loan with a fixed APR and equal monthly payments.
- By default the sales tax and fees are financed; switch that off under More options if you pay them at signing.
- If you owe more on your trade-in than it is worth, the difference is added to the new loan.
- Rebates, add-ons such as extended warranties, and state-specific taxes like registration fees based on value are not modeled separately. Add them to the fees box.
Frequently asked questions
Does paying extra on a car loan save money?
Yes, if the loan has no prepayment penalty: extra money goes straight to the balance, so less interest builds up. On a $33,300 loan at 7.5% for 60 months, $100 extra a month pays it off 9 months sooner and saves $1,068.15 of interest. Enter an amount under More options to see your numbers.
How is a car loan payment calculated?
First the amount financed is found: the price plus tax and fees, minus your down payment and trade-in equity. That amount is then spread over the term with the standard loan formula at your APR.
Is a 72- or 84-month car loan a good idea?
It lowers the payment but raises the total interest, and because cars lose value quickly, you are more likely to owe more than the car is worth for years. Compare the total interest for 60 and 84 months in the calculator before deciding.
What happens if I owe more on my trade-in than it's worth?
That gap, called negative equity, has to be paid. Dealers often add it to the new loan, which raises the amount financed and the interest you pay. The calculator shows a warning and the added amount.
Do I pay sales tax on the full price if I trade in a car?
In most states you pay tax only on the price minus the trade-in value. A few states tax the full price, so check your state's rule and switch the option under More options if needed.
What APR should I enter?
Use the rate from your lender or credit union preapproval. As a benchmark, the Federal Reserve's survey of commercial banks showed an average of about 7.5% for 60-month new-car loans in the third quarter of 2026.
Sources and method
- What is amortization and how could it affect my auto loan? · Consumer Financial Protection Bureau
- Should I trade in my car if it’s not paid off? · Consumer Financial Protection Bureau
- Auto loans key terms · Consumer Financial Protection Bureau
- Consumer Credit - G.19 · Federal Reserve Board
Formulas and figures checked against these sources on November 12, 2026. The calculator runs entirely in your browser; nothing you type is sent to us or stored. Results are estimates for education, not financial, tax or legal advice, and MonyPulse is not a lender, tax preparer or investment adviser. Found an error? Tell us. See how we build and test our calculators and our editorial standards.