How a car payment is worked out
Your payment depends on how much you borrow, the interest rate and how many months you take to pay it back.
What you borrow
Start with the price, including dealer fees. Add sales tax, then take away your down payment and trade-in. In many states, a trade-in also lowers the amount you pay tax on, and this calculator assumes it does.
Longer loans cost more
Stretching the loan lowers the payment, but you pay interest for longer. You can also owe more than the car is worth for a while.
A worked example
Say the car is $35,000, you put $5,000 down, sales tax is 6% and the rate is 7%.
- Sales tax adds $2,100, so you finance $32,100.
- Over 60 months the payment is about $636 a month, with about $6,040 in interest.
- Over 72 months it drops to about $547, but interest grows to about $7,300.
- Over 48 months it's about $769, and you save about $1,240 in interest compared with 60 months.
Open “Compare loan lengths” in the results to see every term side by side.
How this car payment calculator works
It uses the standard fixed-rate loan formula with your rate divided by 12. Total cost is the price plus tax plus interest. It doesn't include registration, title fees or insurance, and your lender's offer may differ, so treat it as a planning estimate.
Tips before you sign
- Get a pre-approval from your bank or credit union to compare with the dealer's rate.
- Agree on the price first, then talk about the monthly payment.
- Plan for insurance, gas and upkeep too, not just the payment.
Already have a loan? The loan payoff calculator shows what paying extra would save.
Questions people ask
Is a 72 or 84-month car loan a bad idea?
Not always, but it usually costs more in interest, and you may owe more than the car is worth for longer. If you can manage a shorter loan, it often saves money.
Is sales tax charged on the trade-in?
In most states, tax is charged on the price minus your trade-in, and that's what this calculator assumes. A few states tax the full price, so check yours.
What if I get 0% financing?
Enter 0 as the rate. Your payment is simply the amount financed divided by the months, with no interest.
Are my numbers saved?
Yes. Everything you type saves automatically in this browser, so it’s here next time, and nothing is sent anywhere. Private windows and clearing your browsing data don’t keep it, so tap Save or print: Save a copy downloads a small file you can open later, or on another device, with Open a saved copy, and Print / Save as PDF gives you a copy to keep.