CAR FINANCING

Auto Loan

Monthly payment with trade-in, sales tax, registration, and fees — the true cost of driving off the lot.

Auto Loan

Monthly payment with trade-in, sales tax, registration, and fees — the true cost of driving off the lot.

Total purchase price
Cash paid upfront
Annual percentage rate
36, 48, 60, 72, 84 are common
Value of your current vehicle
State/local sales tax rate
Dealer fees, title, registration
THE FORMULA

How the math works.

Financed = Price - Down - Trade + Tax + Fees Tax = (Price - Trade) × tax rate Monthly = Financed × r(1+r)ⁿ / ((1+r)ⁿ - 1) Where: r = monthly rate (annual ÷ 12) n = loan term in months

Auto loan calculations differ from personal loans in two ways: trade-in value reduces the financed amount, and sales tax is typically applied to the purchase price minus the trade-in (in most U.S. states). Dealer fees, title, and registration are added to the financed amount.

The interest rate on auto loans depends heavily on credit score and whether the loan is from a bank, credit union, or manufacturer's captive finance company. Promotional 0% APR offers are real but often replace cash rebates — calculate which is better by comparing total cost under both scenarios.

Longer terms (72–84 months) lower monthly payments but dramatically increase total interest and risk negative equity — owing more than the car is worth. A good rule: the loan term should not exceed the period you expect to own the vehicle.