Auto Loan Calculator

Frequently asked questions

How is my monthly car payment calculated?

The calculator uses the standard amortization formula on your loan amount (vehicle price plus sales tax, minus down payment and trade-in). It applies your APR as a monthly rate over the number of months to give a fixed monthly payment that covers principal and interest.

Is sales tax included in the loan?

Yes. Enter your local sales tax rate and the calculator applies it to the taxable price (vehicle price minus trade-in in most states) and adds it to the amount financed. Rules vary by state and country, so confirm how your jurisdiction taxes trade-ins.

How does a trade-in affect my loan?

A trade-in reduces the amount you need to finance and, in many states, lowers the taxable amount. Enter your expected trade-in value and the calculator subtracts it from the price before computing tax and the loan balance.

What is APR versus interest rate?

The interest rate is the cost of borrowing the principal, while APR also reflects certain fees, giving a fuller picture of yearly cost. For a simple estimate you can enter either; for the most accurate payment, use the APR your lender quotes.

Should I choose a longer loan term?

A longer term lowers the monthly payment but increases total interest, and can leave you owing more than the car is worth. A shorter term costs more per month but far less overall. Compare terms in the calculator to find your balance.

Are these results exact?

They are estimates for planning. Actual payments depend on your lender's exact APR, fees, taxes, and any add-ons like warranties or gap insurance. Confirm the final numbers with your lender before signing.