Auto Loan Calculator
Price a car loan the way the dealership writes it: vehicle price plus sales tax, minus down payment and trade-in, financed over the term — payment and the car's true total cost.
The out-the-door number is the loan's real starting line
Dealerships negotiate the vehicle price, then the loan quietly starts from a bigger number: price plus sales tax and fees, minus your down payment and trade-in. This calculator starts where the loan actually starts, and goes one step further — it shows the car's total cost once interest has had its years.
Amount financed = price + sales tax − down payment − trade-in
Example: a $35,000 car with 6% tax ($2,100), $5,000 down and no trade-in finances $32,100. At 7% over 60 months the payment is $635.65, interest $6,039 — so the $35,000 car costs $43,139 all-in before fuel, insurance and a single repair.
The term is the dealership's favorite lever
"What monthly payment were you hoping for?" is the question that sells 84-month loans. Longer terms also keep you underwater longer — owing more than the car is worth — because the balance falls slower than the value does. The balance chart under the result shows your loan's side of that race.
How this is calculated
Sales tax is applied to the vehicle price (trade-in tax treatment varies by state — where your state taxes only the difference, reduce the tax percentage accordingly). Amount financed = price + tax − down − trade-in, then standard monthly amortization at the nominal rate ÷ 12. Total cost shown = price + tax + total interest. Dealer fees can be added into the price for accuracy.
Frequently asked questions
Does my state tax the full price or the price minus trade-in?
Most states tax only the difference when you trade in; a few tax the full price. The form takes a plain percentage — if your state gives the trade-in credit, the effective tax on the deal is lower than the headline rate.
How long a term is sensible for a car?
A common guardrail: the loan should end before the car's reliable life does, and you should hold equity throughout — 48–60 months achieves that for most new cars; 72–84 months often does not.
Should I take dealer financing or my bank's?
Compare APR and term, nothing else — and get the bank's pre-approval first, which converts the dealer's offer into a number that must beat something. Manufacturer promo rates (0–2%) are sometimes genuinely unbeatable.
What is GAP insurance and why does the dealer push it?
It covers the difference between the car's value and the loan balance if the car is totaled while you are underwater. Long terms and small down payments create that gap; the insurance itself is usually cheaper from your own insurer.
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