How the auto loan calculator works
Your amount financed is the vehicle price, plus sales tax, minus your down payment and any trade-in value. This calculator applies sales tax to the price after trade-in (as most U.S. states do), then amortizes the balance over your chosen term to find the monthly payment and total interest.
Ways to lower your car payment
A bigger down payment or trade-in reduces the amount financed. A shorter term raises the monthly payment but saves interest, while a longer term does the opposite. Because cars lose value quickly, a very long term can leave you owing more than the car is worth — so aim for the shortest term you can comfortably afford.
Frequently asked questions
Is sales tax included in my car loan?
In most states, yes — sales tax is added to the amount you finance. Tax is usually charged on the price after your trade-in is deducted, which can save you money. Rules vary by state, so check locally.
What car loan term should I choose?
Common terms are 48–72 months. Shorter terms cost less interest and build equity faster; longer terms lower the monthly payment but cost more overall and increase the risk of owing more than the car is worth.
Does a trade-in reduce my loan?
Yes. Your trade-in value is subtracted from the price, reducing the amount you finance — and in most states it also reduces the taxable amount.