How the auto loan calculator works
It starts with the car’s price, adds sales tax, and takes off your down payment and trade-in to get the amount you borrow. The monthly payment is the fixed amount that pays that off over the term at your interest rate. Dealer fees, registration and add-ons like extended warranties aren’t included; add them to the price if you’re financing them.
Shorter or longer terms
A 72- or 84-month loan lowers the payment, but you pay interest for longer, and the car can be worth less than you owe for much of the loan. A shorter term or a bigger down payment costs less overall. Try a few terms above to see the difference in total interest.
Budgeting for a car
The payment is only part of owning a car. Insurance, fuel, maintenance and registration add up too. In an envelope budget, give each its own envelope, and set aside a little every month for the bills that only come once or twice a year.
Questions
Do all states tax the price after a trade-in?
Most do, but a few charge sales tax on the full price. If yours does, add the tax on the trade-in to the price.
Should I include fees in the price?
If you’re financing them, yes: add dealer, title and registration fees to the price so the payment includes them.
What rate should I use?
The rate from your lender or dealer’s offer. Rates depend on your credit, the term and whether the car is new or used.
Estimates only, using monthly compounding at your APR divided by 12. Your lender’s numbers may differ with daily interest, fees or rate changes. This calculator isn’t financial advice.