Finance Calc App

US Car loan calculator

Estimate your monthly car payment, total interest, and out-the-door cost — with down payment, trade-in, and optional purchase tax.

By Mitch Duncan Last reviewed Methodology

Car & loan details

Monthly payment
$563.07
Amount financed
$28,100.00
Total interest
$5,683.98
Purchase tax
$2,100.00
Total of payments
$33,783.98
Out-the-door cost
$37,783.98

Out-the-door cost includes your down payment, trade-in value, and every loan payment. It excludes registration, insurance, and dealer fees.

How car loans work in the US

A US auto loan is a fixed-rate, amortizing loan, usually arranged through a dealer, bank, or credit union. Each monthly payment covers that month's interest plus principal, calculated from the amount financed, your APR, and the term.

Amount financed = price + sales tax − down payment − trade-in

Sales tax and the trade-in credit

Most states charge sales tax on a car purchase, and many let you pay tax only on the price after your trade-in — a meaningful saving. On a $30,000 car with a $10,000 trade-in in a 7% state, you're taxed on $20,000 ($1,400) instead of $30,000 ($2,100). A handful of states (including California) tax the full price regardless. The tax is typically rolled into the amount financed.

Terms, APR, and credit

Terms of 60–72 months are common, with 84-month loans increasingly offered — longer terms cut the payment but pile on interest and keep you underwater longer. APR is heavily credit-score driven; used-car rates run higher than new. Dealer "0% APR" offers are usually an alternative to a cash rebate, so compare taking the rebate with a credit-union loan.

What this calculator doesn't cover

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Frequently asked questions

How is a car loan payment calculated?
A car loan uses the standard amortization formula: payment = P × r ÷ (1 − (1 + r)⁻ⁿ), where P is the amount financed, r is the monthly rate (APR ÷ 12), and n is the number of months. The amount financed is the vehicle price, plus any purchase tax, minus your down payment and trade-in. A longer term lowers the payment but increases total interest.
Does a bigger down payment reduce the cost?
Yes. A down payment reduces the amount you finance dollar-for-dollar, so you pay interest on a smaller balance — lowering both the monthly payment and the total interest. A larger down payment also reduces the risk of being 'underwater' (owing more than the car is worth) early in the loan.
Should I include sales tax in the loan?
It depends where you buy. In places where tax is added at purchase (such as the US and most of Canada), the tax is usually rolled into the financed amount, so turn the purchase-tax option on. Where advertised prices already include tax (UK VAT, Australian GST), leave it off to avoid double-counting.
What is APR and why does it matter?
APR (annual percentage rate) is the yearly cost of the loan including mandatory fees, which makes it the fairest way to compare lenders. A low headline interest rate paired with fees can cost more than a higher rate with none. Compare offers on APR, and check whether 0% financing is offered instead of a cash rebate.
Is a longer loan term cheaper?
Only month to month. Stretching the term (say from 60 to 84 months) lowers the monthly payment but increases the total interest you pay and keeps you owing more than the car is worth for longer. Shop by total cost and APR, not by the monthly payment a dealer quotes.
Does this include insurance and running costs?
No. This estimates the loan payment, interest, and out-the-door financed cost only. Insurance, fuel or charging, servicing, registration, and any dealer or documentation fees are separate ongoing costs you should budget for on top of the loan.

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