TheFreeTool

Auto Loan Calculator

Enter the price of the car, what you put down, any trade-in, the interest rate and the loan length. You will see the monthly payment and what the car really costs.

$
$
$

Good to know

This is an estimate for general information. It is not tax, legal or financial advice. Your payslip can differ because of tax codes, credits, local taxes, benefits and your employer's rules. Check official guidance or ask a qualified adviser.

What it does

  • Sales tax added to the price
  • Down payment and trade-in value taken off
  • Amount financed, total interest and total cost
  • Any currency from the currency menu

How to use it

  1. Enter the vehicle price, down payment and trade-in value.
  2. Enter the interest rate, loan term in months and sales tax rate.
  3. Read the monthly payment and the total cost of the car.

How is a car loan worked out?

The loan starts from the price plus sales tax, minus your down payment and trade-in. That amount is repaid in equal monthly payments at the interest rate you enter. In many places sales tax is charged only on the price after the trade-in, which is how this calculator treats it.

A longer loan lowers the payment but costs more interest, and the car can be worth less than you owe for longer. Fees, insurance and registration are not included, so check the dealer's figures.

Example

A $35,000 car with $5,000 down, no trade-in, 7% sales tax and a 6.9% loan over 60 months finances $32,450. The payment is about $641.02 a month, with about $6,011 of interest. With the down payment, the car costs about $43,461 in total.

Questions people ask

Is sales tax charged on the trade-in?
Rules differ by state and country. This calculator charges tax on the price minus the trade-in. Check your local rule.
What loan term is best?
Shorter terms cost less interest. Many people choose 36 to 60 months. Very long loans can leave you owing more than the car is worth.
Are fees included?
No. Add documentation fees, registration and insurance separately.

Disclaimer

This tool is for general information only. It is not financial, tax, investment or legal advice, and results are estimates that may differ from your bank, lender or tax authority. Rates, limits and tax rules change. Bank and brand names are used only to describe what the tool does; they belong to their owners and we are not affiliated with them. Check the figures with a qualified professional or your provider before you decide. You use this tool at your own risk, and TheFreeTool is not liable for any loss that follows. Read the full disclaimer

Was this tool helpful?