Car Loan Calculator

Answer capsule: A car loan payment is set by the amount financed, the APR, and the term. Monthly payment = P × r(1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the amount financed, r is the APR divided by 12, and n is the number of months. Example: financing $33,100 at 6.35% APR for 60 months costs $645.32 a month and $5,618.91 in total interest. (Full worked example below.)

Year by year

How the payment is calculated

The amount financed is the vehicle price, minus your down payment, minus your net trade-in equity (trade-in value minus what you still owe on it — if you owe more than it is worth, that negative equity is added to the loan). Sales tax is estimated on the price minus the trade-in value, which is the trade-in credit most states allow; your state's rule may differ. Title, registration, and dealer fees are added as you enter them. If you choose to finance the tax and fees, they are added to the amount financed; otherwise they are due in cash at signing.

The payment formula is the standard amortization formula: payment = P × r(1+r)^n ÷ ((1+r)^n − 1), with P = amount financed, r = APR ÷ 12, n = months.

Worked example

A $35,000 car, $5,000 down, no trade-in, 7% sales tax, $650 in fees, financed at 6.35% APR for 60 months:

6.35% is the average new-car loan rate in Experian's State of the Automotive Finance Market Report, Q2 2026; the average new loan in that report was $43,610 with a $765 average payment.

Payment per $1,000 financed

Quick check without the calculator: find your APR and term, then multiply by how many thousands you are financing.

What changes the answer most

Term length. Stretching a loan from 60 to 84 months cuts the monthly payment but adds thousands in interest, and keeps you owing more than the car is worth for longer. Amount financed. Every $1,000 you do not finance saves roughly $19.50 a month at 6.35% over 60 months — that is why fees and add-ons rolled into a loan cost more than their sticker price. APR. One percentage point on $33,100 over 60 months is roughly $16 a month, about $950 over the loan.

FAQ

Does this calculator include sales tax and fees?
Yes. Enter your tax rate and your title, registration, and dealer fees; you can finance them or pay them in cash, and the result changes to match.

What if I owe more on my trade-in than it is worth?
Enter both numbers. The shortfall (negative equity) is added to the amount financed, which is exactly what a dealer does when it rolls your old loan into the new one.

Why is my dealer's payment different?
Usually a different amount financed: dealer add-ons, a different fee total, or tax calculated without a trade-in credit. Compare the amount financed first — if that matches, the payments should match to the cent.

Is a longer term ever a good idea?
It lowers the payment, but total interest rises sharply and the loan outlasts the car's value for more of its life. Run the same numbers at 60 and 84 months here and compare the total interest line, not just the payment.