Car Payment Calculator
Calculate your exact monthly auto loan payment — including trade-in value, down payment, and sales tax. See your full amortization schedule and total interest paid before you sign anything.
All calculations happen in your browser. No data is sent anywhere.
Your auto loan details
Understanding Your Car Payment
What drives your monthly payment
- Loan principal — vehicle price + sales tax − down payment − trade-in. The single biggest lever.
- APR — even 1–2% difference can mean hundreds of dollars over the life of the loan. Get pre-approved before visiting a dealer.
- Term length — longer term = lower monthly payment, but more total interest. A 72-month loan on a depreciating asset risks leaving you "underwater."
Tips before you sign
- Target a monthly payment under 15% of take-home pay (including insurance).
- Get financing quotes from your bank or credit union first — dealers often markup rates.
- Negotiate the vehicle price and financing separately to avoid confusion.
- Consider total interest paid, not just monthly payment, when choosing a term.
Loan term comparison example
On a $25,000 loan at 6.5% APR:
- 48 months: ~$594/mo — $3,506 total interest
- 60 months: ~$489/mo — $4,340 total interest
- 72 months: ~$415/mo — $5,880 total interest
Choosing 48 vs 72 months saves over $2,300 in interest on a mid-size loan.
Should you lease or buy?
This calculator shows the cost of buying. If you're weighing a lease offer, use our Buy or Lease Calculator to compare monthly payments, effective monthly cost, and total cost of ownership side-by-side.
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How is a monthly car payment calculated?
Your monthly payment is based on the loan principal (vehicle price + sales tax − down payment − trade-in value), the APR, and the loan term. The formula is the standard amortization formula: M = P × r(1+r)^n / ((1+r)^n − 1), where r is the monthly rate and n is the number of months.
Does sales tax affect my monthly payment?
Yes, if sales tax is rolled into the loan. In most states, sales tax is due at purchase and is typically financed as part of the loan. This calculator adds tax to the vehicle price before subtracting your down payment and trade-in to give you the real loan amount.
What is a good APR for a car loan in 2025?
For buyers with excellent credit (750+), new car rates are typically 5–7%. Used car rates run 1–3% higher. Credit unions often beat dealership-arranged financing. Always get pre-approved before visiting a dealer.
Should I choose a 60-month or 72-month loan?
A 72-month term lowers the monthly payment but costs significantly more in interest and keeps you in debt longer. Cars also depreciate fastest in the first 3 years — a long loan risks owing more than the car is worth. Compare terms using this calculator to see the interest cost difference.
Does trade-in value lower my car payment?
Yes. Trade-in value reduces the loan principal, which lowers both your monthly payment and total interest paid. In many states, it also reduces the amount subject to sales tax.
Is my data stored anywhere?
No. All calculations run in your browser. Nothing is sent to any server.