Car Loan Calculator
Calculate your monthly car payment, total interest, and true cost of ownership. Enter vehicle price, down payment, trade-in value, loan term, and interest rate.
Part of our Finance Calculators collection.
Car Loan Calculator
Free online calculator
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How to Use This Calculator
- 1
Enter the vehicle price.
- 2
Enter down payment and trade-in value.
- 3
Set your local sales tax rate.
- 4
Choose loan term and interest rate.
- 5
See your monthly payment and total cost.
Car Loan Payment Formula
Loan Amount = Vehicle Price × (1 + tax rate) − Down Payment − Trade-In Monthly Payment = P × [r(1+r)^n] / [(1+r)^n − 1] Where P = loan amount, r = monthly rate, n = months
Example Calculation
Example: $32,000 car, $5,000 down, 60 months at 7.5%
Inputs
vehiclePrice: 32000downPayment: 5000salesTaxRate: 8loanTermMonths: 60interestRate: 7.5
Result
$609/month | $6,500 total interest
Loan amount: ($32,000 × 1.08) − $5,000 = $29,560. At 7.5% for 60 months = $591/month + ~$5,860 interest.
Frequently Asked Questions
How do I get a lower car payment?
Four levers: larger down payment, longer loan term, lower interest rate (shop multiple lenders), or a less expensive vehicle. Longer terms lower monthly payments but increase total interest paid.
Is 0% APR financing really free?
Often the 0% is subsidised by the manufacturer — the dealer may not negotiate on price. Compare total cost of 0% APR vs a discounted purchase price with standard financing.