You enter the vehicle price, down payment, trade-in value, sales tax rate, interest rate (APR), and loan term in months. The tool subtracts your down payment and trade-in from the sticker price, adds sales tax to the remaining balance, then applies the standard amortization formula with monthly compounding. It assumes a fixed-rate, fully-amortizing loan with no prepayments. Dealer fees, title, registration, and add-ons are not included.
Shorter terms (36–48 months) have higher monthly payments but much less total interest. Longer terms (60–72 months) lower the monthly bill but cost substantially more over the life of the loan and risk going "underwater" — owing more than the car is worth.
A larger down payment reduces the loan amount and total interest. If your loan rate is higher than your expected investment return after tax, putting more down generally saves money. At minimum, 10–20% down helps avoid negative equity.
This calculator applies sales tax to the amount after subtracting down payment and trade-in. Tax rules vary by state — some states tax only the difference between the vehicle price and trade-in value, while others tax the full sticker price.
No. Documentation fees, title, registration, and dealer add-ons are not included. These can add $500–$2,000 or more depending on your state and dealership. Add them to the vehicle price for a more accurate estimate.
Estimate only. Results reflect your inputs and standard formulas — they are not financial, tax, legal, health, or investment advice. Verify important decisions with a qualified professional.