Car Payment Calculator
Enter the vehicle price, down payment, trade-in, sales tax, fees, APR and term to see the amount financed, the monthly payment, total interest and the total cost of the loan.
Last updated November 4, 2026
Leave blank if the trade-in is paid off.
Result
$469.79 per month
| Result | Amount |
|---|---|
| Amount financed | $24,300.00 |
| Monthly payment | $469.79 |
| Total interest | $3,887.22 |
| Total of payments | $28,187.22 |
| Total cost (with down payment) | $31,187.22 |
Total cost is the down payment plus every monthly payment; the trade-in value is the car you give up and is not added. Taxes and fees vary by state, so check your buyer’s order.
Show the work
Formula: amount financed = price + tax + fees - down - (trade-in - owed); payment = P × r ÷ (1 - (1 + r)^-n), r = APR ÷ 12
- Sales tax: $30,000.00 × 6% = $1,800.00.
- Trade-in equity: $5,000.00 - $0.00 = $5,000.00.
- Amount financed: $30,000.00 + $1,800.00 + $500.00 - $3,000.00 - ($5,000.00) = $24,300.00.
- Monthly rate r = 6% ÷ 12 = 0.5000%; payment = $469.79 over 60 months.
- Total of payments: $469.79 × 60 = $28,187.22; interest = $28,187.22 - $24,300.00 = $3,887.22.
- Total cost: $3,000.00 + $28,187.22 = $31,187.22.
Result: Car payment: $469.79/month for 60 months on $24,300.00 financed at 6% APR. Total interest $3,887.22, total cost $31,187.22.
How a car payment is calculated
amount financed = price + sales tax + fees - down payment - (trade-in value - trade-in owed)
payment = P × r ÷ (1 - (1 + r)^-n)
A car loan is a fixed-rate instalment loan. First the calculator works out how much you borrow. It adds sales tax and fees to the price, then subtracts your down payment and the equity in your trade-in. Equity is the trade-in value minus whatever you still owe on it.
The monthly payment then uses the standard amortization formula, the same one behind the Loan Payment Calculator. P is the amount financed, r is the APR divided by 12, and n is the number of monthly payments. At 0% APR there is no interest, so the payment is simply the amount financed divided by the number of months.
Total of payments is the monthly payment times the term. Total interest is that figure minus the amount financed. Total cost adds your down payment to the total of payments, so it shows all the cash you put into the purchase.
See how we calculate for the formulas, sources and review schedule behind every calculator.
Also useful alongside this calculator: VA Loan Calculator, Down Payment Calculator and Closing Cost Calculator.
Trade-ins and negative equity
A trade-in lowers the amount you finance by its value, but only after any loan on it is repaid. If your car is worth $5,000 and you owe $7,000, you have negative equity of $2,000. Dealers usually roll that shortfall into the new loan, so it raises the amount financed instead of lowering it. Enter the balance in the trade-in loan owed field and the calculator does this automatically.
Some states charge sales tax only on the price minus the trade-in value. Use the sales tax on trade-in option to switch to that method. Other states tax the full price, which is the default. Rules differ by state, so check your buyer’s order for the real figure.
Shorter and longer terms
A longer term lowers the monthly payment but increases the interest you pay, because the balance stays outstanding for more months. The table below shows the same $24,300 loan at 6% over four terms. Stretching from 36 to 72 months cuts the payment by more than $330 a month but adds about $2,380 of interest.
A long loan also keeps you owing more than the car is worth for longer. If you may sell or trade the car early, a shorter term protects you from negative equity.
Edge cases and limits
If your down payment and trade-in equity cover the price, tax and fees, nothing is financed and the calculator says so instead of showing a negative loan. The price must be above $0, APR from 0 to 100, and the term a whole number of months from 1 to 120. Results are rounded to cents for display only.
The result is an estimate. It does not include loan origination charges, insurance, registration or add-ons unless you enter them as fees.
General information, not financial advice
This calculator gives a general estimate from the numbers you enter. It is not financial or tax advice, and your actual results can differ. Check important decisions with a qualified professional or the official source.
Sources
Official and primary sources for the statements on this page. Their authors have not reviewed or endorsed this page.
- Consumer Financial Protection Bureau, What is amortization and how could it affect my auto loan?. Explains that in an amortizing loan each payment is split between principal and interest, with more going to interest early in the term. The page is filed under auto loans but describes amortizing loans in general.
How to use the Car Payment Calculator
- Enter the vehicle price, your down payment and any trade-in value.
- Add the balance still owed on the trade-in, the sales tax rate and any fees.
- Enter the APR from your lender offer and the loan term in months.
- Read the amount financed, monthly payment, total interest and total cost.
- Open Show the work to follow each step, or use Copy, Print or Share.
Worked example
A $30,000 car with $3,000 down, a $5,000 trade-in that is paid off, 6% sales tax ($1,800) and $500 of fees. The amount financed is $30,000 + $1,800 + $500 - $3,000 - $5,000 = $24,300, at 6% APR.
| Term (months) | Monthly payment | Total interest | Total cost with down payment |
|---|---|---|---|
| 36 | $739.25 | $2,313.11 | $29,613.11 |
| 48 | $570.69 | $3,092.94 | $30,392.94 |
| 60 | $469.79 | $3,887.22 | $31,187.22 |
| 72 | $402.72 | $4,695.92 | $31,995.92 |
Frequently asked questions
How is a monthly car payment calculated?
The calculator finances the price plus tax and fees less your down payment and trade-in equity, then applies the standard amortization formula with APR divided by 12 and the term in months.
Does the calculator handle a 0% APR offer?
Yes. With 0% APR no interest is charged, so the payment is the amount financed divided by the number of months and total interest is $0.
What happens if I owe more on my trade-in than it is worth?
The shortfall is negative equity. It is added to the amount financed, which raises your payment and total interest on the new loan.
Why is total cost higher than the car price?
Total cost includes sales tax, fees and interest on top of the price, then adds your down payment to every monthly payment you make over the term.
Can I use this to compare a longer loan term?
Yes. Change only the term and compare monthly payment against total interest. A longer term lowers the payment but costs more interest overall.