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Monthly Car Payment Calculator

Estimate your monthly car payment including your down payment, trade-in, sales tax and fees. Compare loan terms side by side and see exactly how much interest you will pay.

100% Private Trade-in & tax Term comparison

Car & Loan

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$
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Trade-in (optional)

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$

Tax & fees

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$
Monthly payment
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Loan amount
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Total interest
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Total of payments
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Due at signing
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Sales tax
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Payoff date
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Compare loan terms

TermMonthlyTotal interestTotal of payments

Yearly schedule

YearPrincipalInterestBalance

How your car payment is calculated

First the amount you borrow is worked out, then the standard loan formula turns it into a fixed monthly payment:

Loan = price + sales tax + fees − down payment − trade-in value + amount still owed on the trade-in
Monthly payment = L × r × (1 + r)n ÷ ((1 + r)n − 1)
L = loan amount  |  r = APR ÷ 12  |  n = number of months

Example: a $35,000 car with $5,000 down, 6% sales tax ($2,100) and $800 of fees means a $32,900 loan. At 7% APR over 60 months the payment is about $651 a month, and you pay about $6,187 in interest.

Tips to lower your car payment

  • Put more down — every $1,000 less borrowed saves interest for the whole term.
  • Improve your rate — get pre-approved by a bank or credit union before visiting the dealer.
  • Be careful with long terms — 72 and 84-month loans lower the payment but cost much more interest and leave you owing more than the car is worth for longer.
  • Avoid rolling over negative equity — money still owed on your trade-in is added straight to the new loan.

Frequently Asked Questions

A common guideline is the 20/4/10 rule: put at least 20% down, finance for no more than 4 years, and keep total car costs (payment, insurance and fuel) under 10% of your gross monthly income.

It can be. Many buyers roll sales tax and fees into the loan, which raises the monthly payment and the interest paid. Untick “Include tax and fees in the loan” to see the cash due at signing instead.

Its value is subtracted from the amount you borrow, and in most US states it also reduces the price that sales tax is charged on. If you still owe money on the trade-in, that amount is added to the new loan.

It depends on your credit score, whether the car is new or used, and the loan term. Borrowers with excellent credit get the lowest rates, while used cars and longer terms usually cost more. Compare offers from several lenders.

A 72-month loan has a lower monthly payment but costs more interest in total, and the car may be worth less than you owe for longer. Use the comparison table above to see the difference in total interest for your numbers.

Estimates only, not financial advice. Your lender’s figures may differ because of fees, rounding and local tax rules.

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