Car Loan Calculator

Your monthly car payment is based on the amount financed — which is the vehicle price plus sales tax, minus your down payment and trade-in value. The calculator uses the standard amortization formula to divide that amount into equal monthly payments over your chosen term.

Sales tax matters. Most states apply sales tax to the full vehicle price before your down payment or trade-in are subtracted. On a $35,000 car in a state with 8% sales tax, that adds $2,800 to the amount you finance — which means more interest over the life of the loan.

New vs. used rates. New car loans typically carry lower interest rates (around 6–8%) than used car loans (9–13%) because new cars carry less uncertainty about condition and value. If you're comparing a new vs. used car, factor in the rate difference — sometimes a newer car with better financing costs less per month despite the higher sticker price.

Affordability rule of thumb. Financial advisors generally recommend keeping your total car payment below 15% of your gross monthly income. If you're above 20%, the car is likely putting meaningful strain on your budget — especially once you factor in insurance, maintenance, and fuel.