Work out the monthly payment on a car loan, with sales tax, your down payment and the total interest over the term, and see what the same loan costs at 4, 5 and 6 years.
| Input | Result |
|---|---|
| $32,000 car, $4,000 down, 7% tax, 6.5% APR, 60 months | $29,960 financed, $586.20/month, $5,212 total interest |
| $28,000 car, $2,000 down, 6% tax, 5.9% APR, 48 months | $27,560 financed, $645.98/month, $3,447 total interest |
| $45,000 car, $8,000 down, 8% tax, 7.9% APR, 72 months | $39,960 financed, $698.68/month, $10,345 total interest |
It is a standard amortisation: take the amount financed, multiply by the monthly interest rate and divide by one minus (1 + monthly rate) raised to the negative power of the number of months. The amount financed is the price plus sales tax, less whatever you put down or trade in.
In many states, yes, the trade value comes off the taxable amount before tax is charged, while a cash down payment usually does not reduce it. The rules are not the same everywhere: some states allow the full trade value, some cap it and some give no credit at all. This calculator applies your rate to (price − down payment and trade), so if your state works differently, adjust the figure you enter.
Because the interest is charged on a balance that stays higher for longer. Stretching a term lowers the monthly figure, but the total interest rises, the comparison table on this page shows both figures side by side for 4, 5 and 6 years.
The APR your lender actually quotes you. There is no default rate here on purpose: rates move with your credit score, the lender, the vehicle age and the week you apply, so any pre-filled number would be a guess. Bring the figure from your loan offer.
No. It is principal and interest on the financed amount. Registration, documentation fees, extended warranties and any products rolled into the loan are not modelled here, and insurance is separate from the loan altogether.
How this page is built and kept current. Written and fact-checked by the MoneyCalcsHub editorial team. We do not sell financial products and we accept no payment to change a result, the arithmetic on this page runs in your own browser from the numbers you type.
Official sources used on this page:
Source-dependent figures are reviewed when the cited issuer publishes an update. Worked examples show the formula applied to the listed inputs; interactive results are calculated in your browser.
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