Car Payment Calculator

Work out the monthly payment on an auto loan — with tax, trade-in and fees — and see how much interest you will pay.

Updated October 2026 · By Jose Luis, LeaseMathHub · Formulas shown below

Monthly payment— / month

Year	Principal paid	Interest paid	Balance left

Amount financed—
Sales tax—
Total interest—
Total of payments—
Total cost (payments + down + trade-in)—
Payment if you shorten the term by 2 years—

100% private. Everything is calculated in your browser. Nothing you type is sent or stored on a server.

Estimates for education only — not financial, tax or legal advice. Lenders may calculate taxes and fees differently by state or province. Always check your contract.

How a car loan payment is calculated

An auto loan is an amortizing loan: every month you pay the same amount, part interest and part principal. Early payments are mostly interest; later ones mostly principal. This auto loan calculator first works out how much you actually borrow, then applies the standard loan formula.

Amount financed = price + sales tax + fees − down payment − trade-in Monthly payment = amount × r ÷ (1 − (1 + r)^−n) (r = APR ÷ 12, n = months)

Worked example

A $35,000 car with 6% sales tax ($2,100), $500 of fees and $5,000 down means you finance $32,600. At 7% APR for 60 months the payment is about $645.52 a month, and you pay about $6,131 in interest over the loan.

How to lower your car payment

Get pre-approved by a bank or credit union before visiting the dealer, so you can compare the dealer's APR.
Put more down. Every $1,000 down at 7% for 60 months saves about $20 a month.
Choose a shorter term if you can afford it. The payment is higher, but the total interest falls sharply — the calculator shows the payment for a term two years shorter.
Negotiate the price, not the payment. Dealers can hit any monthly number by stretching the term.

Loan or lease?

A lease usually has a lower monthly payment because you only pay for the depreciation, but you don't own the car at the end. Compare both with the car lease calculator and the lease vs buy calculator, or start from your budget with the car affordability calculator.

Frequently asked questions

How do I calculate my monthly car payment?

Add sales tax and fees to the price, subtract your down payment and trade-in, then apply the loan formula with your APR and term. The calculator does this instantly.

Is sales tax included in a car loan?

In most US states sales tax is charged on the price minus your trade-in, and many buyers roll it into the loan. Enter 0 if you pay the tax in cash.

What is a good APR for a car loan?

It depends on your credit score, the lender and whether the car is new or used. Compare offers from a bank, a credit union and the dealer before you sign.

Should I choose a 60- or 72-month car loan?

A 72-month loan lowers the payment but costs more interest, and you may owe more than the car is worth for longer. Choose the shortest term you can comfortably afford.

Does a bigger down payment lower my payment?

Yes. It reduces the amount financed, so both the monthly payment and the total interest go down.

Is this an offer of credit?

No. It is an estimate for planning. Your lender's figures may differ slightly because of rounding, fees or how interest is charged.