Borrowing
Car Loan Calculator
Calculate your monthly car payment including sales tax, trade-in and fees, see total interest and cost, or find how much car a monthly budget buys.
Monthly payment
$732.75
60 payments · $37,450.00 financed
Sales tax
$2,450.00
on $35,000.00
Amount financed
$37,450.00
Total interest
$6,515.12
over 5 yrs
Total cost of the car
$43,965.12
cash, trade equity and all payments
Sales tax: where this figure comes from
State and local sales tax on a vehicle runs from nothing in five states to over 10% with local add-ons; 7% is mid-range.
7% of $35,000.00 is $2,450.00. The trade-in comes off the price before the tax is worked out here, so a part-exchange cuts the tax as well as the loan. The rate varies within the country, so it is an editable starting figure rather than one number that applies everywhere.
Most states charge sales tax on the price after the trade-in is deducted, which is worth real money on a part-exchange.
How the amount financed is built
$35,000.00 price + $2,450.00 Sales tax + $0.00 fees − $0.00 down − $0.00 trade-in equity = $37,450.00.
Trade-in equity is the car's value minus what you still owe on it, so only the part you actually own reduces the new loan.
How the monthly payment is worked out
Loan × r ÷ (1 − (1 + r)−n), with the loan at $37,450.00, the monthly rate r = 6.5% ÷ 12 = 0.5417% and n = 60 payments, gives $732.75.
Interest is charged each month on the balance still outstanding, so the early payments are mostly interest and the later ones mostly principal. Over 5 yrs that comes to $6,515.12.
United States rules. An estimate, not financial advice, providers may calculate differently.
- Vehicle price$35,000.0080%
- Interest$6,515.1215%
- Sales tax$2,450.006%
Repayment schedule
| Year | Paid | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $8,793.00 | $6,551.66 | $2,241.34 | $30,898.34 |
| 2 | $8,793.00 | $6,990.42 | $1,802.58 | $23,907.92 |
| 3 | $8,793.00 | $7,458.58 | $1,334.42 | $16,449.34 |
| 4 | $8,793.00 | $7,958.12 | $834.88 | $8,491.22 |
| 5 | $8,793.00 | $8,491.10 | $301.90 | $0.00 |
A result link includes the numbers you entered. Share it only with people you want to see them.
How this is calculated
In some countries a purchase tax is added on top of the advertised price; in others it is already inside that price, so there is nothing to add and no field to fill in. This calculator asks the country first and then follows the sequence a dealer's paperwork uses: price plus tax and any financed fees, less the down payment and the trade-in's equity, is the loan, and the standard amortisation formula turns the loan into a monthly payment. In Monthly payment mode you enter the car you are looking at and see what it costs each month; in How much car mode you enter the payment your budget allows and the calculator works backwards to the most expensive car that fits.
Loanprice + tax + fees − down payment − trade equity
PaymentLoan × r ÷ (1 − (1 + r)−n)
- price
- the advertised price of the car
- tax
- the purchase tax, where the country adds one on top: the rate × the taxable amount
- trade equity
- the trade-in's value minus what you still owe on it
- r
- the contractual annual interest rate divided by 12
- n
- the number of monthly payments
What this does not include
- Insurance, extended warranties and GAP cover, unless you add them to the fees field.
- Depreciation: the total cost counts what you pay, not what the car is worth later.
- Balloon or residual payments and variable-rate finance.
- Manufacturer rebates: reduce the price yourself to model one.
How this calculator works
Car loan calculator guide: tax, trade-ins and the term. What is actually financed on a car purchase, why the trade-in can cut the sales tax, how the term trades payment against interest, with three worked examples.
This calculator in other countries
Each country has its own rates, thresholds and rules, and its own page that runs the calculator on them and cites the official sources they came from.
Data sources
| Dataset | Authority | Effective | Status |
|---|---|---|---|
| United States consumer finance conventions | Social Security Administration | Within its effective period | |
| United Kingdom consumer finance conventions | GOV.UK | Within its effective period | |
| German consumer finance conventions | Deutsche Rentenversicherung | Not yet in effect | |
| Canadian consumer finance conventions | Government of Canada | Within its effective period | |
| Australian consumer finance conventions | Services Australia | Within its effective period | |
| Irish consumer finance conventions | Citizens Information | Within its effective period | |
| Dutch consumer finance conventions | SVB | Within its effective period | |
| New Zealand consumer finance conventions | Work and Income | Within its effective period | |
| Swedish consumer finance conventions | Pensionsmyndigheten | Within its effective period | |
| Indian consumer finance conventions | Reserve Bank of India | Within its effective period | |
| Sri Lankan consumer finance conventions | Central Bank of Sri Lanka | Within its effective period | |
| Finnish consumer finance conventions | Finnish Centre for Pensions | Within its effective period | |
| Japanese consumer finance conventions | Japan Pension Service | Within its effective period | |
| French consumer finance conventions | Service-public.fr | Within its effective period | |
| Spanish consumer finance conventions | Seguridad Social | Within its effective period |
Every document each dataset was read from, its notes and how the figures were checked are listed in the guide's data sources.
This calculator is for general information only and is not financial advice. Results are estimates based on the figures you enter and the stated formula; lenders and providers may round or calculate differently. Check any decision with the institution involved or a qualified adviser.