Auto loan calculator
The real monthly payment, with tax and trade-in counted.
Payment every month
$590.08
| Year | Interest | Principal | Ending balance |
|---|
What a car really borrows
The amount financed on a car deal is rarely the sticker price. A trade-in and a down payment come off the top, but sales tax and dealer fees go back on. Many states charge tax on the price after the trade-in is deducted, and this calculator follows that common pattern: tax is worked out on price minus trade-in, then the tax and fees are added to what you borrow. That is why two deals with the same sticker price and the same rate can carry different payments.
Term is the lever dealers reach for first, because a longer term always lowers the monthly figure on the page in front of you. What it raises is the interest total and the time you owe more than the car is worth. Stretching from 48 to 72 months on a typical loan can add well over a thousand dollars of interest while the car loses value the whole time. Compare deals on total cost and amount financed here, not on the monthly number alone.
A larger down payment helps twice: it cuts the interest charged on every month that follows, and it protects you from being upside down early in the loan, when the car has depreciated fastest and the balance has barely moved.
Frequently asked questions
How much do I actually finance on a $35,000 car?
Less than the sticker price once your trade-in and down payment come off, but more once tax and fees go on. With a $5,000 trade-in, $3,000 down, 8% tax and $400 of fees, the amount financed is $29,800, which at 7% over 60 months is $590.08 a month.
Is sales tax charged on the full price or after the trade-in?
In many states, tax is charged on the price minus the trade-in value, which is the approach this calculator uses. A few states tax the full price instead, so check your state's rule before signing.
Does a longer loan term save money?
It lowers the monthly payment but raises the total cost, because the balance is outstanding for longer and accrues more interest. Compare the total of payments for a 48 and a 72 month term before choosing on payment alone.
Related calculators
Estimates only. Tax treatment of trade-ins and fees varies by state and dealer; this tool is not financial advice.