Car Loan Calculator
Calculate the monthly payment, total interest and total cost of a car loan.
Formula and sources updated · Data sources · 1View algorithm, constants and default inputs (JSON)
Breakdown
About this calculator
A car loan amortises like any other instalment loan: each payment covers the interest accrued that month plus whatever is left to reduce the balance. Longer terms lower the payment but raise the total interest paid.
Worked example
calculated with the default values below
Vehicle price 32,000 $ · Down payment 5,000 $ · Trade-in value 3,000 $ · Annual interest rate 6.5 % · Loan term 60 months · Sales tax 7 % Monthly payment 509.31 $ · Amount financed 26,030.00 $ · Total interest 4,528.41 $ · Total of payments 30,558.41 $ · Down payment percentage 25.0 %
Method and assumptions
M = F·r ÷ [1 − (1+r)^−n]; r = APR% ÷ 100 ÷ 12 Sales tax applies only to (price − trade-in T); F = price + tax − down payment − T, floored at 0; total interest = M·n − F. A car loan amortises like any other instalment loan: each payment covers the interest accrued that month plus whatever is left to reduce the balance. Longer terms lower the payment but raise the total interest paid.
Data sources
Disclaimer
These calculators give estimates for general information only. Real fuel consumption, performance and range vary with driving style, load, terrain, temperature and vehicle condition. Do not rely on these results for towing limits, payload or braking decisions — use the rating plate of your vehicle.
Implementation source
This record describes the implementation used by this page. It is not independent validation. External references, when available, support only the stated formula or definition; estimates and custom rules retain their own assumptions.
Formula and variables
M = F·r ÷ [1 − (1+r)^−n]; r = APR% ÷ 100 ÷ 12
- M
- Monthly payment
- F
- Amount financed (incl. tax, less down/trade-in)
- r
- Monthly interest rate
- n
- Term in months
- APR
- Annual Percentage Rate
Sales tax applies only to (price − trade-in T); F = price + tax − down payment − T, floored at 0; total interest = M·n − F.
Frequently asked questions
How does the trade-in affect sales tax and financing?
The tool calculates sales tax on price minus trade-in, then subtracts both the trade-in and cash down payment from the amount financed. At the defaults, tax is 7% of $29,000, amount financed is $26,030, and the rate is 6.5% for 60 months. Trade-in tax treatment varies by jurisdiction, so adjust your inputs or calculate local tax separately if this assumption does not apply.
Which inputs and limits apply to Car Loan Calculator?
Use the units shown beside each field. These are form limits, not recommended settings. Vehicle price: 0–2,000,000 $; Down payment: 0–2,000,000 $; Trade-in value: 0–2,000,000 $; Annual interest rate: 0–40 %; Loan term: 6–120 months; Sales tax: 0–25 % M = F·r ÷ [1 − (1+r)^−n]; r = APR% ÷ 100 ÷ 12 Sales tax applies only to (price − trade-in T); F = price + tax − down payment − T, floored at 0; total interest = M·n − F. A car loan amortises like any other instalment loan: each payment covers the interest accrued that month plus whatever is left to reduce the balance. Longer terms lower the payment but raise the total interest paid.
What is a complete worked example for Vehicle price = 32,000 $; Down payment = 5,000 $?
Inputs: Vehicle price = 32,000 $; Down payment = 5,000 $; Trade-in value = 3,000 $; Annual interest rate = 6.5 %; Loan term = 60 months; Sales tax = 7 %. Calculation: M = F·r ÷ [1 − (1+r)^−n]; r = APR% ÷ 100 ÷ 12. Results: Monthly payment = 509.31 $; Amount financed = 26,030.00 $; Total interest = 4,528.41 $; Total of payments = 30,558.41 $; Down payment percentage = 25.0 %.