Car Loan Calculator

Calculate your monthly car payment, total interest, and true cost of the loan including sales tax and trade-in.

Updated April 2026

Car Loan Details

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How Car Loan Payments Are Calculated

Car loan payments use the same amortization formula as mortgages: your monthly payment is calculated so that equal payments over the loan term pay off the principal plus all interest exactly. Early payments are mostly interest; later payments shift toward principal.

Sales Tax

Most states charge sales tax on vehicle purchases, typically on the purchase price minus any trade-in allowance. Rates range from 0% (states like Oregon, Montana, Delaware) to over 9% in some counties. Sales tax is usually rolled into the loan amount unless paid upfront — meaning you're financing the tax and paying interest on it.

Trade-In Value

A trade-in reduces the vehicle price before tax is calculated (in most states), reducing your taxable amount and your loan balance. Get multiple trade-in quotes — dealer offers are often 10-20% below private-party values.

Loan Term Trade-Offs

Longer terms (72-84 months) mean lower monthly payments but significantly more total interest — and risk of being "underwater" (owing more than the car is worth) as vehicles depreciate. Most financial advisors recommend keeping car loan terms at 60 months or less.

Disclaimer: For informational purposes only. Not tax, legal, or financial advice.