Car Loan Calculator
Estimate your monthly payments and total cost
Payment Breakdown
Balance Over Time
How the Car Loan Calculator Works
Understanding the math behind your auto financing helps you make better decisions at the dealership.
Why Use This Tool?
Buying a car is one of the most significant financial decisions you'll make. This tool helps you see the true cost of ownership beyond just the monthly payment. By adjusting variables like down payment and interest rates, you can find a loan that fits your long-term financial health, not just your current budget.
Loan Amount vs. Vehicle Price
The loan amount isn't just the price of the car. It's the 'net' amount you need to borrow after accounting for your upfront contributions.
- Vehicle Price: The base cost of the car.
- Down Payment: Cash you pay upfront to reduce the loan.
- Trade-In Value: The value of your current car given to the dealer.
- Trade-In Owed: Any remaining negative equity from your previous loan.
The Monthly Payment Formula
We use the standard amortization formula to calculate payments. This ensures the loan is paid off exactly at the end of the term with a mix of principal and interest.
- Interest is calculated monthly on the remaining balance.
- Early payments go mostly toward interest.
- Later payments go mostly toward the principal balance.
Taxes and Upfront Fees
Many states calculate sales tax on the price of the car after the trade-in value is subtracted, which can save you significant money.
- Sales Tax = (Price - Trade-In Value) × Tax Rate
- Due at Signing: Includes down payment, full sales tax, and registration fees.
- These costs are typically paid upfront and not rolled into the loan.