Car Payment Calculator with Tax, Fees and Trade-In
What will my monthly car payment be? Enter the car price, what you pay up front and your loan terms to see the monthly payment, the amount financed and the total cost of the loan. This page prices a loan you take out to buy. To price a lease instead, use the car lease calculator, and to see whether you can afford the car at all, use the car affordability calculator.
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Formula
- Amount financed =
price + price x tax% + fees - down payment - trade-in - Monthly rate
r = APR / 12, number of paymentsn = term in months - Payment =
financed x r / (1 - (1 + r)^-n), orfinanced / nwhen the rate is 0% - Total of payments =
payment x n; interest =total of payments - financed
Assumptions: sales tax is charged on the full vehicle price, and tax and fees are financed. Results are estimates; your lender's schedule may differ slightly.
Worked example
Price 30,000, down payment 3,000, trade-in 2,000, tax 8%, fees 500, APR 6%, 60 months.
- Tax = 30,000 x 8% = 2,400
- Financed = 30,000 + 2,400 + 500 - 3,000 - 2,000 = 27,900
r = 0.005, payment = 27,900 x 0.005 / (1 - 1.005^-60) = 539.39 a month- Total of payments = 539.39 x 60 = 32,363.40, so interest = 4,463.40
- Total cost with the down payment and trade-in = 37,363.40
Use this when
You have a price and a loan offer and want the monthly figure. Try the same car at two terms to see the trade-off: a longer term lowers the payment but raises the interest. Terms of roughly 36 to 72 months are typical, though what you can get depends on the lender.
How it differs from nearby pages
The car affordability calculator works backwards from your income to a price. The car lease calculator uses a residual and money factor instead of a loan. The lease vs buy calculator compares both. The car loan early payoff calculator starts after you already have a loan.
Common mistakes
- Comparing offers by monthly payment alone and ignoring the term.
- Forgetting sales tax and fees, which are financed here.
- Entering the rate as a monthly figure. Enter the annual rate (APR).
- Counting a trade-in at the dealer's quote when the real value is lower.
Frequently asked questions
How is a car payment calculated?
The amount financed is the price plus sales tax and fees, minus your down payment and trade-in. The payment is that amount times r / (1 - (1 + r)^-n), where r is the monthly rate (APR / 12) and n the number of months. For 27,900 at 6% over 60 months it is 539.39 a month.
Is sales tax added to the loan?
This calculator assumes tax and fees are rolled into the loan, with tax charged on the full vehicle price. A price of 30,000 at 8% adds 2,400. Some places tax the price after the trade-in, so lower the rate you enter if that applies to you.
Does a longer term lower my payment?
Yes, but it raises the total interest. Financing 27,900 at 6% costs 539.39 a month for 60 months (4,463 interest) but 655.23 for 48 months with about 3,551 interest, so a shorter term costs less overall.
How much do a down payment and trade-in help?
Each unit you put down or trade in reduces the amount financed by one unit, and the interest on it. Adding 5,000 of down payment and trade-in to a 30,000 car cuts the financed amount by 5,000 and, at 6% over 60 months, saves roughly 800 in interest.
What is the monthly payment on a $20,000 car loan for 60 months at 5%?
With no down payment, tax or fees, a 20,000 loan at 5 percent for 60 months costs 377.42 a month. Total interest is 2,645.20 and the total paid is 22,645.20.
Is a 72-month car loan much worse than a 48-month loan?
Yes for interest, though the payment is lower. Financing 31,500 at 7 percent costs 537.04 a month for 72 months with 7,166.88 of interest, against 754.31 a month for 48 months with 4,706.88 of interest. That is 2,460 more interest for the longer term.
How do I calculate a car payment with 0% financing?
Set the rate to 0 and the payment is simply the amount financed divided by the months. The default 30,000 car with 3,000 down, 2,000 trade-in, 8 percent tax and 500 fees finances 27,900, which is 465 a month for 60 months with no interest.