Auto Loan Calculator
Estimate monthly car payments with price, down payment, trade-in, sales tax, fees, APR, and term. Private browser-side calculator.
By Utilix Editorial Team · Added May 4, 2026 · Updated Sep 6, 2026
Scenario A
Input
Result
Enter a value for vehicle price to see your result.
How it works
Estimates a monthly car payment by combining vehicle price, down payment, trade-in value, sales tax, fees, interest rate, and loan term.
Formula
Amount Financed = Vehicle Price + Tax + Fees − Down Payment − Trade-in Monthly Payment = P × r / (1 − (1 + r)^(−n))
- P
- Amount financed
- r
- Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n
- Loan term in months
Step by step
- 01Subtract trade-in value from the vehicle price for the taxable base.
- 02Add estimated sales tax and fees, then subtract down payment and trade-in value.
- 03Convert the annual interest rate to a monthly rate.
- 04Use the standard amortized loan formula to calculate the monthly payment.
Examples
$32,000 car, $4,000 down
After trade-in, tax, fees, and down payment, the financed balance is about $28,600.
Inputs
- Vehicle price:
- 32000
- Down payment:
- 4000
- Trade-in value:
- 2000
- Sales tax rate:
- 8
- Fees:
- 700
- Annual interest rate:
- 7.5
- Loan term:
- 60
Result
- Monthly payment:
- 588.75
- Amount financed:
- 28600
More about this tool
This calculator builds the amount you actually finance before applying the standard amortized loan formula:
Amount Financed = Vehicle Price + Sales Tax + Fees − Down Payment − Trade-in
Monthly Payment = P × r / (1 − (1 + r)^(−n))
Sales tax is calculated on the vehicle price after subtracting your trade-in value, which matches how most US states compute tax-on-trade-in credit — check your state's specific rule if you're close to a decision boundary.
When to Use This vs a Dealer Quote
Dealer financing quotes often bundle in extras (extended warranties, gap insurance, service contracts) that inflate the monthly payment beyond the base loan math shown here. Use this calculator to know your baseline expected payment before walking into a dealership, so you can spot add-ons in their quote.
New vs Used Vehicle Considerations
New vehicles typically qualify for lower manufacturer-subsidized rates but depreciate fastest in the first year. Used vehicles often carry a slightly higher rate but a lower total price and slower depreciation — run both scenarios with the comparison feature to see which produces a better total cost of ownership for your situation.
Common Mistakes This Calculator Helps You Avoid
- Only looking at the monthly payment. A lower payment from a longer term can cost thousands more in total interest — check the "Total interest" and "Total paid incl. down" fields together.
- Forgetting sales tax and fees. These can add several thousand dollars to the amount financed and are easy to underestimate when budgeting.
- Ignoring trade-in payoff. If you still owe money on a trade-in, that payoff amount (not the trade-in's market value) is what actually reduces your new loan — this calculator assumes the trade-in value entered is net of any payoff.
Run a few scenarios with different down payments and terms side by side using the comparison toggle to find the payment and total-cost balance that fits your budget.
Frequently asked questions
Does trade-in reduce tax?
This tool assumes tax applies after trade-in. Rules vary by jurisdiction, so confirm local treatment.
Are insurance and registration included?
Only fees you enter are included. Insurance, maintenance, and fuel are separate ownership costs.
Should I finance through the dealer or my bank?
Compare both. Dealers sometimes offer promotional rates on new vehicles, but banks and credit unions often beat dealer financing on used vehicles or when your credit is strong. Get a pre-approval rate from your bank before negotiating at the dealer.
How much should my down payment be?
20% is a common guideline for new vehicles to avoid being underwater (owing more than the car is worth) as it depreciates. Used vehicles depreciate slower, so 10% is often sufficient. A larger down payment always lowers your monthly payment and total interest.
Why is a 72 or 84-month term risky?
Longer terms lower the monthly payment but keep you financed on a depreciating asset for longer, increasing the odds you owe more than the car is worth (negative equity) if you need to sell or trade in early. Total interest paid is also significantly higher than on a 48–60 month term.