🚗 Auto Loan Calculator
Find the monthly payment on a car loan before you sign — tax and down payment included.
How it works
First the loan amount: the car's price, plus sales tax on the full price, minus your down payment. The payment itself uses the standard loan formula — payment = P × r ÷ (1 − (1+r)−n) — with r as the monthly rate and n as the number of months. The total cost line adds your down payment back in, because that money left your pocket too.
An example
A $35,000 car with 6% sales tax and $5,000 down leaves a loan of $32,100. At 6.5% over 60 months the payment is $628.07 a month, the interest adds up to $5,584.40, and the whole deal costs $42,684.40 once the down payment is counted. That gap between the sticker price and the total is what financing really adds.
Common questions
Why is tax calculated on the full price?
In most states the tax is due on the sale price of the car, not on the amount you finance. This calculator follows that, then subtracts your down payment to get the loan amount. Some states give a tax break for a trade-in, which would lower it a little.
Is a longer loan ever a good idea?
It lowers the monthly payment, but you pay interest for more years while the car keeps losing value. On a 72-month loan it is easy to end up owing more than the car is worth.
Should I take dealer financing or a bank loan?
Compare the APR and the term, not just the monthly payment. A dealer payment that looks lower often just stretches the loan over more months. Run both sets of numbers here and compare the total cost line.
Related calculators
This calculator gives estimates for learning. Rates, taxes and rules change, and your lender or the IRS has the final numbers — check big decisions against the real documents.