Car Loan Calculator
Work out car finance payments including trade-in, down payment and sales tax.
Please note: An estimate, not a finance offer. Dealer fees, registration, insurance and any balloon payment are excluded unless entered, and advertised finance rates are usually conditional on credit approval.
What the Car Loan Calculator does
Car finance works like any amortizing loan, but the amount financed includes sales tax and is reduced by your down payment and any trade-in. Longer terms lower the payment while raising total interest and the time spent in negative equity.
Formula
Financed = Price + Sales tax − Down payment − Trade-inPayment = F × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)
Inputs explained
| Input | Unit | Required | Notes |
|---|---|---|---|
| Vehicle price | selected currency | Yes | Accepts more than 0. |
| Down payment | selected currency | Optional | Accepts 0 or more. |
| Trade-in value | selected currency | Optional | Accepts 0 or more. |
| Sales tax | % | Optional | — |
| Annual interest rate | % | Yes | — |
| Loan term | years | Yes | Accepts 0 or more, up to 30. |
| Currency | one of 10 options | Optional | — |
How to use it
- Choose Currency.
- Enter Vehicle price, Annual interest rate and Loan term.
- Optionally add Down payment, Trade-in value and Sales tax.
- Select Calculate.
Worked example
A $32,000 car, $4,000 down, $6,000 trade-in, 6% sales tax, 5 years at 7.9%.
- Price
- 32000
- Down
- 4000
- Trade-in
- 6000
- Sales tax
- 6
- Rate
- 7.9
- Term
- 5
Financed $23,920, monthly payment $483.51, total interest $5,090.
Frequently asked questions
Is a longer car loan a bad idea?
Usually. A 7-year loan cuts the payment but costs far more interest, and you stay underwater on the value for years.
Should I put the trade-in toward the down payment?
It reduces the amount financed the same way cash does, so yes — it directly lowers both the payment and total interest.
Method and sources
Method. The standard amortizing-loan formula, applied to the amount financed after sales tax, down payment and trade-in are netted out.
Assumptions
- Sales tax is charged on the full price and financed along with it, which matches most jurisdictions but not all — some tax the price after trade-in credit.
- The trade-in value entered is treated as certain; an appraisal at the dealership can differ from an online estimate.
Limitations
- Dealer fees, registration, insurance and any balloon or residual payment are excluded unless you enter them.
- Advertised finance rates are frequently conditional on credit approval and on choosing dealer financing over an outside loan — this calculator prices the rate you enter, not what you will necessarily be offered.