Financial · Live

Your real
car payment.

A precise auto-loan calculator that includes sales tax with optional trade-in credit, document fees, negative equity roll-in, and a full month-by-month amortization schedule — so the number you see is the one you'll actually pay.

How it worksReal-time

Inputs

Vehicle & loan

Vehicle price32,000

Down payment≈ 12.5%

Trade-in (optional)

Trade-in value

Tax & fees

Sales tax

Document & fees

Interest rate (APR)7.5%

Loan term5 yr

Cash price (out the door): $34,670.00
Amount financed: $30,670.00
Payoff date: May 2031

Monthly payment

60-mo · 7.5%

$615

Includes $2,320.00 sales tax and $350.00 fees.

Loan

83%

Loan

$30,670.00

Interest

$6,203.83

Tax + fees

$2,670.00

Cash price

$34,670.00

Vehicle + $2,320.00 tax + $350.00 fees

Total interest

$6,203.83

Over 60 payments

Total cost

$40,873.83

Cash up front + every payment

Breakdown

Where every dollar goes

Vehicle price: $32,000.00
Sales tax (7.25%, after trade): $2,320.00
Document & registration fees: $350.00
Down payment: − $4,000.00
Amount financed: $30,670.00
LTV (loan ÷ price): 95.8%

Schedule

Monthly amortization

60 payments

Month	Payment	Principal	Interest	Balance
1	$614.56	$422.88	$191.69	$30,247.12
2	$614.56	$425.52	$189.04	$29,821.60
3	$614.56	$428.18	$186.39	$29,393.43
4	$614.56	$430.85	$183.71	$28,962.57
5	$614.56	$433.55	$181.02	$28,529.02
6	$614.56	$436.26	$178.31	$28,092.77
7	$614.56	$438.98	$175.58	$27,653.78
8	$614.56	$441.73	$172.84	$27,212.05
9	$614.56	$444.49	$170.08	$26,767.56
10	$614.56	$447.27	$167.30	$26,320.30
11	$614.56	$450.06	$164.50	$25,870.24
12	$614.56	$452.87	$161.69	$25,417.36
13	$614.56	$455.71	$158.86	$24,961.66
14	$614.56	$458.55	$156.01	$24,503.10
15	$614.56	$461.42	$153.14	$24,041.68
16	$614.56	$464.30	$150.26	$23,577.38
17	$614.56	$467.21	$147.36	$23,110.17
18	$614.56	$470.13	$144.44	$22,640.05
19	$614.56	$473.06	$141.50	$22,166.99
20	$614.56	$476.02	$138.54	$21,690.97
21	$614.56	$479.00	$135.57	$21,211.97
22	$614.56	$481.99	$132.57	$20,729.98
23	$614.56	$485.00	$129.56	$20,244.98
24	$614.56	$488.03	$126.53	$19,756.95
25	$614.56	$491.08	$123.48	$19,265.86
26	$614.56	$494.15	$120.41	$18,771.71
27	$614.56	$497.24	$117.32	$18,274.47
28	$614.56	$500.35	$114.22	$17,774.12
29	$614.56	$503.48	$111.09	$17,270.65
30	$614.56	$506.62	$107.94	$16,764.02
31	$614.56	$509.79	$104.78	$16,254.24
32	$614.56	$512.97	$101.59	$15,741.26
33	$614.56	$516.18	$98.38	$15,225.08
34	$614.56	$519.41	$95.16	$14,705.67
35	$614.56	$522.65	$91.91	$14,183.02
36	$614.56	$525.92	$88.64	$13,657.10
37	$614.56	$529.21	$85.36	$13,127.89
38	$614.56	$532.51	$82.05	$12,595.38
39	$614.56	$535.84	$78.72	$12,059.53
40	$614.56	$539.19	$75.37	$11,520.34
41	$614.56	$542.56	$72.00	$10,977.78
42	$614.56	$545.95	$68.61	$10,431.83
43	$614.56	$549.36	$65.20	$9,882.46
44	$614.56	$552.80	$61.77	$9,329.66
45	$614.56	$556.25	$58.31	$8,773.41
46	$614.56	$559.73	$54.83	$8,213.68
47	$614.56	$563.23	$51.34	$7,650.45
48	$614.56	$566.75	$47.82	$7,083.70
49	$614.56	$570.29	$44.27	$6,513.41
50	$614.56	$573.86	$40.71	$5,939.56
51	$614.56	$577.44	$37.12	$5,362.12
52	$614.56	$581.05	$33.51	$4,781.07
53	$614.56	$584.68	$29.88	$4,196.38
54	$614.56	$588.34	$26.23	$3,608.05
55	$614.56	$592.01	$22.55	$3,016.03
56	$614.56	$595.71	$18.85	$2,420.32
57	$614.56	$599.44	$15.13	$1,820.88
58	$614.56	$603.18	$11.38	$1,217.70
59	$614.56	$606.95	$7.61	$610.75
60	$614.56	$610.75	$3.82	$0.00

Field guide

How a car payment is actually calculated.

A monthly car payment looks like a single number, but it's built from four moving parts: the price you negotiate, the sales tax your state charges, any one-time fees the dealer adds, and the financing terms (down payment, trade-in, APR, and term). Get any one of those wrong on the contract and the payment changes, sometimes by hundreds of dollars per month.

The amount financed

The principal balance of an auto loan is the cash price of the vehicle plus tax and fees, minus the down payment and trade-in equity:

amountFinanced = price + salesTax + fees − downPayment − tradeInEquity

Where tradeInEquity = tradeInValue − tradeInOwed. If you owe more on your trade than it's worth, that negative equity rolls into the new loan and you finance it on top of the new car, interest and all.

The amortization formula

The monthly payment is the same fixed-rate formula used by every personal and home loan:

M = P · r · (1 + r)ⁿ ⁄ ((1 + r)ⁿ − 1)

P: amount financed
r: monthly interest rate (APR ÷ 12)
n: number of monthly payments
M: fixed monthly payment

The trade-in sales-tax credit

Most U.S. states tax the difference between the new vehicle's price and the trade-in value, so a $5,000 trade-in saves the buyer roughly $400 in tax in a state with an 8% rate. A handful of states tax the full price regardless of trade — California, Michigan, Virginia, and Kentucky are the biggest. The toggle above lets you model both. Always check your state's current rule before signing.

The "out the door" price

Dealers often advertise the vehicle price, not the price after tax and fees. The honest number to negotiate is the out-the-door price: vehicle + sales tax + documentation, title, and registration fees. That's the number we use as the cash price above; it doesn't include financing.

How term length changes the math

Stretching from a 60-month to an 84-month loan can drop the monthly payment by $100 or more, but you'll pay roughly 50% more interest over the life of the loan, and you're more likely to be underwater (owing more than the car is worth) for the first three years. If the lower payment is a real necessity, take it, but try to refinance once you have equity back.

What APR really represents

The annual percentage rate is the all-in cost of borrowing, including most lender-required fees, expressed as a yearly percentage. For new cars in the U.S., expect APRs roughly in the 5–10% range for prime credit and 10–18% or higher for subprime. Used-car APRs run 1–3 percentage points above new-car APRs. Even small APR differences compound: 1% over a 60-month $30,000 loan is about $800 in interest.

Worked example

On a $32,000 vehicle with $4,000 down, 7.25% sales tax (with trade-in credit, but no trade), $350 in document fees, financed at 7.5% APR for 60 months: the sales tax is $2,320, the cash price out the door is $34,670, the amount financed is $30,670, and the monthly payment is roughly $614/mo. Total interest paid over the loan: about $6,200.

What this calculator doesn't model

We don't model dealer rebates that reduce the amount financed, manufacturer cash incentives, gap insurance, extended warranties bundled into the loan, balloon payments, or lease-style residuals. For those, treat the adjusted price you'd see on the contract as the "Vehicle price" input.

Disclaimer

Results are estimates for educational use. Actual lender quotes can differ based on credit tier, dealer reserve, and state-specific fees. Always confirm the contract before signing.

FAQ

Frequently asked

Is sales tax always added to the loan?+

Almost always — most states require sales tax up front, and most dealers roll it into the financing rather than asking for it in cash. Two exceptions: a handful of buyers pay tax separately, and states like Oregon (no sales tax) skip it entirely.

What's a 'good' APR on a car loan?+

It depends on credit and term. As a benchmark, prime borrowers see 5–8% on new cars and 6–9% on used cars; subprime can be 14% or more. The APR you're offered should also be compared to manufacturer-promoted rates (0% APR offers are real but usually require excellent credit).

How much should I put down?+

A common rule is 20% down on a new car, 10% on a used car. The math reason: it gets you out of negative equity faster and reduces the loan principal that accrues interest. Putting nothing down is allowed by most lenders but multiplies your interest cost.

Should I take a 72- or 84-month loan?+

Long terms lower the payment but raise total interest paid and extend the period you're underwater. If you'd otherwise stretch your monthly budget, a longer term is reasonable, but plan to refinance once you have equity, or take a shorter loan and a less-expensive car.

How is the trade-in tax credit calculated?+

In most states, sales tax is computed on (vehicle price − trade-in value). On a $32,000 car with a $5,000 trade-in at 7% tax, you save $350 vs. paying tax on the full price. A few states (CA, MI, VA, KY) tax the full price regardless.

What if I owe more on my trade than it's worth?+

That's negative equity. The shortfall is added to the new loan principal, so on a $32,000 car with $4,000 of negative equity, you'd actually finance $36,000+ before tax and fees. Most lenders will roll up to ~120% LTV; beyond that you'll need cash.

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